0001446159 2001-12-31 0001446159 us-gaap:CommonStockMember 2001-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2001-12-31 0001446159 us-gaap:RetainedEarningsMember 2001-12-31 0001446159 2002-04-22 0001446159 2002-01-01 2002-12-31 0001446159 us-gaap:CommonStockMember 2002-01-01 2002-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2002-01-01 2002-12-31 0001446159 us-gaap:RetainedEarningsMember 2002-01-01 2002-12-31 0001446159 2002-12-31 0001446159 us-gaap:CommonStockMember 2002-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2002-12-31 0001446159 us-gaap:RetainedEarningsMember 2002-12-31 0001446159 2003-01-01 2003-12-31 0001446159 us-gaap:CommonStockMember 2003-01-01 2003-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2003-01-01 2003-12-31 0001446159 us-gaap:RetainedEarningsMember 2003-01-01 2003-12-31 0001446159 2003-12-31 0001446159 us-gaap:CommonStockMember 2003-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2003-12-31 0001446159 us-gaap:RetainedEarningsMember 2003-12-31 0001446159 2004-01-01 2004-12-31 0001446159 us-gaap:CommonStockMember 2004-01-01 2004-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2004-01-01 2004-12-31 0001446159 us-gaap:RetainedEarningsMember 2004-01-01 2004-12-31 0001446159 2004-12-31 0001446159 us-gaap:CommonStockMember 2004-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2004-12-31 0001446159 us-gaap:RetainedEarningsMember 2004-12-31 0001446159 2005-01-01 2005-12-31 0001446159 us-gaap:CommonStockMember 2005-01-01 2005-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2005-01-01 2005-12-31 0001446159 us-gaap:RetainedEarningsMember 2005-01-01 2005-12-31 0001446159 2005-12-31 0001446159 us-gaap:CommonStockMember 2005-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2005-12-31 0001446159 us-gaap:RetainedEarningsMember 2005-12-31 0001446159 us-gaap:StockOptionMember 2005-12-31 0001446159 us-gaap:WarrantMember 2005-12-31 0001446159 2006-01-01 2006-12-31 0001446159 us-gaap:CommonStockMember 2006-01-01 2006-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2006-01-01 2006-12-31 0001446159 us-gaap:RetainedEarningsMember 2006-01-01 2006-12-31 0001446159 us-gaap:StockOptionMember 2006-01-01 2006-12-31 0001446159 us-gaap:WarrantMember 2006-01-01 2006-12-31 0001446159 bior:WarrantOneMember 2006-01-01 2006-12-31 0001446159 2006-12-31 0001446159 us-gaap:CommonStockMember 2006-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2006-12-31 0001446159 us-gaap:RetainedEarningsMember 2006-12-31 0001446159 us-gaap:StockOptionMember 2006-12-31 0001446159 us-gaap:WarrantMember 2006-12-31 0001446159 2007-03-01 2007-03-31 0001446159 2007-07-01 2007-07-31 0001446159 2007-01-01 2007-12-31 0001446159 us-gaap:CommonStockMember 2007-01-01 2007-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2007-01-01 2007-12-31 0001446159 us-gaap:RetainedEarningsMember 2007-01-01 2007-12-31 0001446159 us-gaap:StockOptionMember 2007-01-01 2007-12-31 0001446159 us-gaap:WarrantMember 2007-01-01 2007-12-31 0001446159 bior:StockOptionsOneMember 2007-01-01 2007-12-31 0001446159 bior:WarrantTwoMember 2007-01-01 2007-12-31 0001446159 2007-12-31 0001446159 us-gaap:CommonStockMember 2007-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2007-12-31 0001446159 us-gaap:RetainedEarningsMember 2007-12-31 0001446159 us-gaap:StockOptionMember 2007-12-31 0001446159 us-gaap:WarrantMember 2007-12-31 0001446159 us-gaap:MinimumMember 2008-07-01 2008-12-31 0001446159 us-gaap:MaximumMember 2008-07-01 2008-12-31 0001446159 2008-01-01 2008-12-31 0001446159 bior:ValueAt2009Member 2008-01-01 2008-12-31 0001446159 bior:ValueAt2012Member 2008-01-01 2008-12-31 0001446159 us-gaap:MaximumMember 2008-01-01 2008-12-31 0001446159 us-gaap:MinimumMember 2008-01-01 2008-12-31 0001446159 bior:WarrantThreeMember us-gaap:MaximumMember 2008-01-01 2008-12-31 0001446159 us-gaap:CommonStockMember 2008-01-01 2008-12-31 0001446159 us-gaap:WarrantMember 2008-01-01 2008-12-31 0001446159 bior:StockOptionsTwoMember us-gaap:MaximumMember 2008-01-01 2008-12-31 0001446159 us-gaap:PatentsMember 2008-01-01 2008-12-31 0001446159 bior:GainLoss2010Member 2008-01-01 2008-12-31 0001446159 bior:StockOptionsTwoMember us-gaap:MinimumMember 2008-01-01 2008-12-31 0001446159 us-gaap:StockOptionMember 2008-01-01 2008-12-31 0001446159 bior:ValueAt2011Member 2008-01-01 2008-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2008-01-01 2008-12-31 0001446159 bior:WarrantThreeMember 2008-01-01 2008-12-31 0001446159 bior:StockOptionsTwoMember 2008-01-01 2008-12-31 0001446159 bior:ValueAt2010Member 2008-01-01 2008-12-31 0001446159 bior:GainLoss2012Member 2008-01-01 2008-12-31 0001446159 bior:WarrantThreeMember us-gaap:MinimumMember 2008-01-01 2008-12-31 0001446159 us-gaap:RetainedEarningsMember 2008-01-01 2008-12-31 0001446159 bior:GainLoss2011Member 2008-01-01 2008-12-31 0001446159 2008-12-31 0001446159 us-gaap:CommonStockMember 2008-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2008-12-31 0001446159 us-gaap:RetainedEarningsMember 2008-12-31 0001446159 us-gaap:StockOptionMember 2008-12-31 0001446159 us-gaap:WarrantMember 2008-12-31 0001446159 2009-01-02 0001446159 2009-03-31 2009-06-30 0001446159 bior:ValueAt2009Member 2009-03-31 2009-06-30 0001446159 bior:GainLoss2012Member 2009-03-31 2009-06-30 0001446159 bior:ValueAt2012Member 2009-03-31 2009-06-30 0001446159 bior:GainLoss2010Member 2009-03-31 2009-06-30 0001446159 bior:ValueAt2010Member 2009-03-31 2009-06-30 0001446159 bior:GainLoss2011Member 2009-03-31 2009-06-30 0001446159 bior:ValueAt2011Member 2009-03-31 2009-06-30 0001446159 2009-07-01 2009-09-30 0001446159 bior:ValueAt2009Member 2009-07-01 2009-09-30 0001446159 bior:GainLoss2012Member 2009-07-01 2009-09-30 0001446159 bior:ValueAt2012Member 2009-07-01 2009-09-30 0001446159 bior:GainLoss2010Member 2009-07-01 2009-09-30 0001446159 bior:ValueAt2010Member 2009-07-01 2009-09-30 0001446159 bior:GainLoss2011Member 2009-07-01 2009-09-30 0001446159 bior:ValueAt2011Member 2009-07-01 2009-09-30 0001446159 2009-10-01 2009-10-31 0001446159 2009-10-01 2009-12-31 0001446159 bior:ValueAt2009Member 2009-10-01 2009-12-31 0001446159 bior:GainLoss2012Member 2009-10-01 2009-12-31 0001446159 bior:ValueAt2012Member 2009-10-01 2009-12-31 0001446159 bior:GainLoss2010Member 2009-10-01 2009-12-31 0001446159 bior:ValueAt2010Member 2009-10-01 2009-12-31 0001446159 bior:GainLoss2011Member 2009-10-01 2009-12-31 0001446159 bior:ValueAt2011Member 2009-10-01 2009-12-31 0001446159 2009-01-01 2009-12-31 0001446159 bior:ValueAt2009Member 2009-01-01 2009-12-31 0001446159 bior:WarrantFourMember 2009-01-01 2009-12-31 0001446159 bior:StockOptionsThreeMember us-gaap:MinimumMember 2009-01-01 2009-12-31 0001446159 us-gaap:MinimumMember 2009-01-01 2009-12-31 0001446159 us-gaap:CommonStockMember 2009-01-01 2009-12-31 0001446159 us-gaap:WarrantMember 2009-01-01 2009-12-31 0001446159 us-gaap:StockOptionMember 2009-01-01 2009-12-31 0001446159 bior:WarrantFourMember us-gaap:MinimumMember 2009-01-01 2009-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2009-01-01 2009-12-31 0001446159 bior:WarrantFourMember us-gaap:MaximumMember 2009-01-01 2009-12-31 0001446159 us-gaap:MaximumMember 2009-01-01 2009-12-31 0001446159 bior:StockOptionsThreeMember us-gaap:MaximumMember 2009-01-01 2009-12-31 0001446159 us-gaap:RetainedEarningsMember 2009-01-01 2009-12-31 0001446159 bior:StockOptionsThreeMember 2009-01-01 2009-12-31 0001446159 2009-12-31 0001446159 us-gaap:CommonStockMember 2009-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2009-12-31 0001446159 us-gaap:RetainedEarningsMember 2009-12-31 0001446159 us-gaap:StockOptionMember 2009-12-31 0001446159 us-gaap:WarrantMember 2009-12-31 0001446159 us-gaap:MinimumMember 2009-12-31 0001446159 us-gaap:MaximumMember 2009-12-31 0001446159 2010-01-01 2010-03-31 0001446159 bior:GainLoss2012Member 2010-01-01 2010-03-31 0001446159 bior:ValueAt2012Member 2010-01-01 2010-03-31 0001446159 bior:GainLoss2010Member 2010-01-01 2010-03-31 0001446159 bior:ValueAt2010Member 2010-01-01 2010-03-31 0001446159 bior:GainLoss2011Member 2010-01-01 2010-03-31 0001446159 bior:ValueAt2011Member 2010-01-01 2010-03-31 0001446159 2010-04-01 2010-06-30 0001446159 bior:GainLoss2012Member 2010-04-01 2010-06-30 0001446159 bior:ValueAt2012Member 2010-04-01 2010-06-30 0001446159 bior:GainLoss2010Member 2010-04-01 2010-06-30 0001446159 bior:ValueAt2010Member 2010-04-01 2010-06-30 0001446159 bior:GainLoss2011Member 2010-04-01 2010-06-30 0001446159 bior:ValueAt2011Member 2010-04-01 2010-06-30 0001446159 2010-06-01 2010-06-30 0001446159 2010-07-22 0001446159 2010-07-01 2010-09-30 0001446159 bior:GainLoss2012Member 2010-07-01 2010-09-30 0001446159 bior:ValueAt2012Member 2010-07-01 2010-09-30 0001446159 bior:GainLoss2010Member 2010-07-01 2010-09-30 0001446159 bior:ValueAt2010Member 2010-07-01 2010-09-30 0001446159 bior:GainLoss2011Member 2010-07-01 2010-09-30 0001446159 bior:ValueAt2011Member 2010-07-01 2010-09-30 0001446159 2010-09-01 2010-09-30 0001446159 2010-01-01 2010-12-31 0001446159 bior:WarrantFiveMember 2010-01-01 2010-12-31 0001446159 us-gaap:MinimumMember 2010-01-01 2010-12-31 0001446159 us-gaap:CommonStockMember 2010-01-01 2010-12-31 0001446159 us-gaap:WarrantMember 2010-01-01 2010-12-31 0001446159 us-gaap:StockOptionMember 2010-01-01 2010-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2010-01-01 2010-12-31 0001446159 bior:WarrantFiveMember us-gaap:MinimumMember 2010-01-01 2010-12-31 0001446159 us-gaap:MaximumMember 2010-01-01 2010-12-31 0001446159 us-gaap:RetainedEarningsMember 2010-01-01 2010-12-31 0001446159 bior:WarrantFiveMember us-gaap:MaximumMember 2010-01-01 2010-12-31 0001446159 bior:StockOptionsFourMember 2010-01-01 2010-12-31 0001446159 2010-12-31 0001446159 us-gaap:CommonStockMember 2010-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2010-12-31 0001446159 us-gaap:RetainedEarningsMember 2010-12-31 0001446159 us-gaap:StockOptionMember 2010-12-31 0001446159 us-gaap:WarrantMember 2010-12-31 0001446159 us-gaap:MinimumMember 2010-12-31 0001446159 us-gaap:MaximumMember 2010-12-31 0001446159 bior:NotePayableIssuedThreeMember 2010-12-31 0001446159 bior:NotePayableIssuedSevenMember 2010-12-31 0001446159 bior:NotePayableIssuedNineMember 2010-12-31 0001446159 bior:NotePayableIssuedTenMember 2010-12-31 0001446159 bior:NotePayableToIndividualsMember 2010-12-31 0001446159 bior:NotePayableIssuedOneMember 2010-12-31 0001446159 bior:NotePayableIssuedTwoMember 2010-12-31 0001446159 bior:NotePayableIssuedFourMember 2010-12-31 0001446159 bior:NotePayableIssuedFiveMember 2010-12-31 0001446159 bior:NotePayableIssuedSixMember 2010-12-31 0001446159 bior:NotePayableIssuedEightMember 2010-12-31 0001446159 bior:NotePayableIssuedElevenMember 2010-12-31 0001446159 us-gaap:ConvertibleNotesPayableMember 2010-12-31 0001446159 bior:NotePayableIssuedThirteenMember 2010-12-31 0001446159 bior:NotePayableIssuedFourteenMember 2010-12-31 0001446159 bior:NotePayableToBankMember 2010-12-31 0001446159 2010-12-01 2010-12-31 0001446159 2011-01-01 2011-01-31 0001446159 bior:ConvertibleNotesOneMember 2011-01-01 2011-01-31 0001446159 bior:ConvertibleNotesTwoMember 2011-01-01 2011-01-31 0001446159 bior:ConvertibleNotesThreeMember 2011-01-01 2011-01-31 0001446159 bior:NotePayableIssuedThirteenMember 2011-01-01 2011-03-31 0001446159 2011-03-31 0001446159 2011-04-01 2011-06-30 0001446159 bior:NotePayableIssuedThirteenMember 2011-04-01 2011-06-30 0001446159 2011-01-01 2011-06-30 0001446159 2011-06-30 0001446159 2011-09-07 0001446159 bior:DrHerschkowitzMember 2011-12-20 0001446159 2011-01-01 2011-12-31 0001446159 bior:WarrantThreeMember 2011-01-01 2011-12-31 0001446159 bior:WarrantSixMember 2011-01-01 2011-12-31 0001446159 bior:WarrantEightMember 2011-01-01 2011-12-31 0001446159 us-gaap:OfficeEquipmentMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedOneMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedTenMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsThreeMember us-gaap:MinimumMember 2011-01-01 2011-12-31 0001446159 us-gaap:MaximumMember 2011-01-01 2011-12-31 0001446159 bior:MorawetzMember 2011-01-01 2011-12-31 0001446159 bior:WarrantOneMember 2011-01-01 2011-12-31 0001446159 bior:WarrantSevenMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedEightMember 2011-01-01 2011-12-31 0001446159 us-gaap:MinimumMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedThirteenMember 2011-01-01 2011-12-31 0001446159 bior:WarrantThreeMember us-gaap:MaximumMember 2011-01-01 2011-12-31 0001446159 us-gaap:CommonStockMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedSixMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsFourMember us-gaap:MinimumMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedThreeMember 2011-01-01 2011-12-31 0001446159 us-gaap:WarrantMember 2011-01-01 2011-12-31 0001446159 bior:WarrantTwoMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableToBankMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsFourMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsTwoMember 2011-01-01 2011-12-31 0001446159 bior:WarrantSixMember us-gaap:MinimumMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedTwoMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsFiveMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsFourMember us-gaap:MaximumMember 2011-01-01 2011-12-31 0001446159 us-gaap:StockOptionMember 2011-01-01 2011-12-31 0001446159 bior:WarrantFourMember us-gaap:MinimumMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedNineMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedFourMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedFiveMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsSixMember 2011-01-01 2011-12-31 0001446159 bior:SokPartnersMember us-gaap:SubsequentEventMember 2011-01-01 2011-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2011-01-01 2011-12-31 0001446159 bior:WarrantTenMember 2011-01-01 2011-12-31 0001446159 bior:WarrantNineMember 2011-01-01 2011-12-31 0001446159 bior:GadbawMember 2011-01-01 2011-12-31 0001446159 bior:WarrantFiveMember us-gaap:MinimumMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsOneMember 2011-01-01 2011-12-31 0001446159 bior:WarrantFiveMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedElevenMember 2011-01-01 2011-12-31 0001446159 bior:WarrantFourMember us-gaap:MaximumMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableIssuedFourteenMember 2011-01-01 2011-12-31 0001446159 bior:WarrantSixMember us-gaap:MaximumMember 2011-01-01 2011-12-31 0001446159 us-gaap:SubsequentEventMember 2011-01-01 2011-12-31 0001446159 us-gaap:FurnitureAndFixturesMember 2011-01-01 2011-12-31 0001446159 us-gaap:ConvertibleNotesPayableMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsThreeMember us-gaap:MaximumMember 2011-01-01 2011-12-31 0001446159 bior:WarrantFourteenMember 2011-01-01 2011-12-31 0001446159 bior:DrHerschkowitzMember us-gaap:SubsequentEventMember 2011-01-01 2011-12-31 0001446159 bior:WarrantThreeMember us-gaap:MinimumMember 2011-01-01 2011-12-31 0001446159 us-gaap:RetainedEarningsMember 2011-01-01 2011-12-31 0001446159 bior:WarrantTwelveMember 2011-01-01 2011-12-31 0001446159 bior:WarrantFourMember 2011-01-01 2011-12-31 0001446159 bior:WarrantFiveMember us-gaap:MaximumMember 2011-01-01 2011-12-31 0001446159 bior:StockOptionsThreeMember 2011-01-01 2011-12-31 0001446159 bior:WarrantElevenMember 2011-01-01 2011-12-31 0001446159 bior:WarrantFifteenMember 2011-01-01 2011-12-31 0001446159 bior:NotePayableToIndividualsMember 2011-01-01 2011-12-31 0001446159 bior:WarrantThirteenMember 2011-01-01 2011-12-31 0001446159 2011-12-31 0001446159 bior:WarrantThreeMember 2011-12-31 0001446159 bior:WarrantFiveMember 2011-12-31 0001446159 bior:WarrantSixMember 2011-12-31 0001446159 bior:NotePayableIssuedTwoMember 2011-12-31 0001446159 bior:WarrantFourMember 2011-12-31 0001446159 bior:WarrantEightMember 2011-12-31 0001446159 bior:NotePayableIssuedOneMember 2011-12-31 0001446159 bior:NotePayableIssuedTenMember 2011-12-31 0001446159 bior:MorawetzMember 2011-12-31 0001446159 bior:WarrantOneMember 2011-12-31 0001446159 bior:WarrantSevenMember 2011-12-31 0001446159 bior:NotePayableIssuedNineMember 2011-12-31 0001446159 us-gaap:MinimumMember 2011-12-31 0001446159 us-gaap:CommonStockMember 2011-12-31 0001446159 bior:NotePayableIssuedThreeMember 2011-12-31 0001446159 us-gaap:WarrantMember 2011-12-31 0001446159 bior:WarrantTwoMember 2011-12-31 0001446159 bior:NotePayableIssuedSixMember 2011-12-31 0001446159 bior:NotePayableIssuedSevenMember 2011-12-31 0001446159 bior:NotePayableToBankMember 2011-12-31 0001446159 bior:StockOptionsFourMember 2011-12-31 0001446159 us-gaap:ConvertibleNotesPayableMember 2011-12-31 0001446159 bior:StockOptionsTwoMember 2011-12-31 0001446159 bior:StockOptionsFiveMember 2011-12-31 0001446159 us-gaap:StockOptionMember 2011-12-31 0001446159 bior:NotePayableIssuedThirteenMember 2011-12-31 0001446159 bior:StockOptionsSixMember 2011-12-31 0001446159 bior:SokPartnersMember us-gaap:SubsequentEventMember 2011-12-31 0001446159 us-gaap:AdditionalPaidInCapitalMember 2011-12-31 0001446159 bior:WarrantTenMember 2011-12-31 0001446159 bior:NotePayableIssuedTwelveMember 2011-12-31 0001446159 bior:WarrantNineMember 2011-12-31 0001446159 bior:GadbawMember 2011-12-31 0001446159 bior:StockOptionsOneMember 2011-12-31 0001446159 bior:NotePayableIssuedFourMember 2011-12-31 0001446159 bior:NotePayableToIndividualsMember 2011-12-31 0001446159 us-gaap:MaximumMember 2011-12-31 0001446159 bior:FirstAdvanceMember 2011-12-31 0001446159 bior:NotePayableIssuedEightMember 2011-12-31 0001446159 bior:WarrantFourteenMember 2011-12-31 0001446159 bior:DrHerschkowitzMember us-gaap:SubsequentEventMember 2011-12-31 0001446159 us-gaap:RetainedEarningsMember 2011-12-31 0001446159 bior:AndcorCompaniesIncMember 2011-12-31 0001446159 bior:WarrantTwelveMember 2011-12-31 0001446159 bior:NotePayableIssuedFourteenMember 2011-12-31 0001446159 bior:NotePayableIssuedElevenMember 2011-12-31 0001446159 bior:StockOptionsThreeMember 2011-12-31 0001446159 bior:NotePayableIssuedFiveMember 2011-12-31 0001446159 bior:WarrantElevenMember 2011-12-31 0001446159 bior:WarrantFifteenMember 2011-12-31 0001446159 bior:WarrantThirteenMember 2011-12-31 0001446159 bior:DrHerschkowitzMember 2011-12-01 2011-12-31 0001446159 2002-04-23 2011-12-31 0001446159 2012-03-28 0001446159 bior:FirstAdvanceMember 2012-03-28 0001446159 bior:SecondAdvanceMember 2012-03-28 0001446159 us-gaap:StockOptionMember 2012-01-01 2012-03-31 0001446159 us-gaap:WarrantMember 2012-01-01 2012-03-31 0001446159 us-gaap:StockOptionMember 2012-03-31 0001446159 us-gaap:WarrantMember 2012-03-31 0001446159 2012-04-01 2012-04-30 0001446159 2012-04-01 2012-06-30 0001446159 us-gaap:StockOptionMember 2012-04-01 2012-06-30 0001446159 us-gaap:WarrantMember 2012-04-01 2012-06-30 0001446159 bior:WarrantOneMember 2012-04-01 2012-06-30 0001446159 bior:WarrantTwoMember 2012-04-01 2012-06-30 0001446159 us-gaap:MinimumMember 2012-04-01 2012-06-30 0001446159 us-gaap:MaximumMember 2012-04-01 2012-06-30 0001446159 bior:WarrantFourMember 2012-04-01 2012-06-30 0001446159 bior:WarrantFiveMember 2012-04-01 2012-06-30 0001446159 us-gaap:BoardOfDirectorsChairmanMember 2012-04-01 2012-06-30 0001446159 bior:WarrantSevenMember 2012-04-01 2012-06-30 0001446159 us-gaap:WarrantMember us-gaap:MaximumMember 2012-04-01 2012-06-30 0001446159 bior:WarrantEightMember 2012-04-01 2012-06-30 0001446159 bior:WarrantElevenMember 2012-04-01 2012-06-30 0001446159 us-gaap:DirectorMember 2012-04-01 2012-06-30 0001446159 bior:WarrantThirteenMember 2012-04-01 2012-06-30 0001446159 bior:SokPartnersMember 2012-04-01 2012-06-30 0001446159 bior:WarrantFourteenMember 2012-04-01 2012-06-30 0001446159 bior:StockOptionsSixMember 2012-04-01 2012-06-30 0001446159 us-gaap:WarrantMember us-gaap:MinimumMember 2012-04-01 2012-06-30 0001446159 2012-01-01 2012-06-30 0001446159 bior:WarrantThreeMember 2012-01-01 2012-06-30 0001446159 bior:WarrantSixMember 2012-01-01 2012-06-30 0001446159 bior:WarrantEightMember 2012-01-01 2012-06-30 0001446159 us-gaap:OfficeEquipmentMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedOneMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedTenMember 2012-01-01 2012-06-30 0001446159 us-gaap:MaximumMember 2012-01-01 2012-06-30 0001446159 bior:WarrantOneMember 2012-01-01 2012-06-30 0001446159 bior:WarrantSevenMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedEightMember 2012-01-01 2012-06-30 0001446159 us-gaap:MinimumMember 2012-01-01 2012-06-30 0001446159 us-gaap:CommonStockMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedSixMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedThreeMember 2012-01-01 2012-06-30 0001446159 bior:StockOptionsFourMember 2012-01-01 2012-06-30 0001446159 bior:StockOptionsTwoMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedTwoMember 2012-01-01 2012-06-30 0001446159 bior:StockOptionsFiveMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedTenMember us-gaap:MaximumMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedNineMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedFourMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedFiveMember 2012-01-01 2012-06-30 0001446159 bior:WarrantTwoMember 2012-01-01 2012-06-30 0001446159 us-gaap:AdditionalPaidInCapitalMember 2012-01-01 2012-06-30 0001446159 bior:WarrantTenMember 2012-01-01 2012-06-30 0001446159 bior:WarrantNineMember 2012-01-01 2012-06-30 0001446159 bior:StockOptionsOneMember 2012-01-01 2012-06-30 0001446159 bior:WarrantFiveMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedElevenMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedTenMember us-gaap:MinimumMember 2012-01-01 2012-06-30 0001446159 us-gaap:SubsequentEventMember 2012-01-01 2012-06-30 0001446159 us-gaap:FurnitureAndFixturesMember 2012-01-01 2012-06-30 0001446159 us-gaap:ConvertibleNotesPayableMember 2012-01-01 2012-06-30 0001446159 bior:WarrantFourteenMember 2012-01-01 2012-06-30 0001446159 us-gaap:RetainedEarningsMember 2012-01-01 2012-06-30 0001446159 bior:NotePayableIssuedSevenMember 2012-01-01 2012-06-30 0001446159 bior:WarrantTwelveMember 2012-01-01 2012-06-30 0001446159 bior:WarrantFourMember 2012-01-01 2012-06-30 0001446159 bior:StockOptionsThreeMember 2012-01-01 2012-06-30 0001446159 bior:WarrantElevenMember 2012-01-01 2012-06-30 0001446159 bior:WarrantFifteenMember 2012-01-01 2012-06-30 0001446159 bior:WarrantThirteenMember 2012-01-01 2012-06-30 0001446159 2012-06-30 0001446159 bior:WarrantThreeMember 2012-06-30 0001446159 bior:WarrantSevenMember 2012-06-30 0001446159 bior:WarrantFiveMember 2012-06-30 0001446159 bior:WarrantSixMember 2012-06-30 0001446159 bior:NotePayableIssuedTwoMember 2012-06-30 0001446159 bior:WarrantFourMember 2012-06-30 0001446159 bior:WarrantEightMember 2012-06-30 0001446159 bior:NotePayableIssuedOneMember 2012-06-30 0001446159 bior:NotePayableIssuedTenMember 2012-06-30 0001446159 bior:WarrantOneMember 2012-06-30 0001446159 us-gaap:MinimumMember us-gaap:SubsequentEventMember 2012-06-30 0001446159 bior:NotePayableIssuedNineMember 2012-06-30 0001446159 bior:SokPartnersMember 2012-06-30 0001446159 us-gaap:MinimumMember 2012-06-30 0001446159 us-gaap:CommonStockMember 2012-06-30 0001446159 bior:NotePayableIssuedThreeMember 2012-06-30 0001446159 us-gaap:WarrantMember 2012-06-30 0001446159 bior:WarrantTwoMember 2012-06-30 0001446159 bior:NotePayableIssuedSixMember 2012-06-30 0001446159 bior:RelatedPartyMember 2012-06-30 0001446159 bior:NotePayableIssuedSevenMember 2012-06-30 0001446159 bior:StockOptionsFourMember 2012-06-30 0001446159 us-gaap:ConvertibleNotesPayableMember 2012-06-30 0001446159 us-gaap:MaximumMember us-gaap:SubsequentEventMember 2012-06-30 0001446159 bior:StockOptionsTwoMember 2012-06-30 0001446159 bior:StockOptionsFiveMember 2012-06-30 0001446159 us-gaap:StockOptionMember 2012-06-30 0001446159 us-gaap:AdditionalPaidInCapitalMember 2012-06-30 0001446159 bior:WarrantTenMember 2012-06-30 0001446159 bior:NotePayableIssuedTwelveMember 2012-06-30 0001446159 bior:AmuelHerschkowitzMember 2012-06-30 0001446159 bior:WarrantNineMember 2012-06-30 0001446159 bior:StockOptionsOneMember 2012-06-30 0001446159 bior:NotePayableIssuedFourMember 2012-06-30 0001446159 bior:NotePayableToIndividualsMember 2012-06-30 0001446159 us-gaap:MaximumMember 2012-06-30 0001446159 bior:NotePayableIssuedEightMember 2012-06-30 0001446159 us-gaap:SubsequentEventMember 2012-06-30 0001446159 bior:WarrantFourteenMember 2012-06-30 0001446159 us-gaap:RetainedEarningsMember 2012-06-30 0001446159 bior:WarrantTwelveMember 2012-06-30 0001446159 bior:NotePayableIssuedElevenMember 2012-06-30 0001446159 bior:StockOptionsThreeMember 2012-06-30 0001446159 bior:NotePayableIssuedFiveMember 2012-06-30 0001446159 bior:WarrantElevenMember 2012-06-30 0001446159 bior:WarrantFifteenMember 2012-06-30 0001446159 bior:WarrantThirteenMember 2012-06-30 0001446159 2002-04-23 2012-06-30 0001446159 2012-08-13 0001446159 2002-04-23 2012-08-13 0001446159 2012-08-31 0001446159 2012-10-08 0001446159 2002-04-23 2012-10-08 iso4217:USD iso4217:USDxbrli:shares xbrli:shares xbrli:pure BioDrain Medical, Inc. 0001446159 Smaller Reporting Company S-1 false 2012-06-30 0 463838 16632 9383 57638 122985 35283 0 0 0 50294 32062 0 97605 96792 8126 30148 66267 17509 301032 230404 6831 4600 4143 141532 140588 140588 165872 446220 375135 56000 1055559 1206082 768720 731135 663481 498707 566574 577926 479910 1333694 2353268 2447489 1006789 630153 89300 14946 166063 106466 140023 320740 673160 5052497 8844952 11776818 7382077 11868956 14718098 0 0 0 0 -36057 6015 8985 -51057 -91118 6470 43930 -141518 -181361 6536 43974 -231871 -302170 6686 46867 -355723 -514641 8231 105877 -628749 -712497 8237 660430 -1381164 -309445 81308 2753039 -3143792 -2342030 113830 3573507 -6029368 -2189557 140023 5052497 -7382077 -2189557 -2703264 320740 8844952 -11868956 -2268120 673160 11776818 -14718098 165872 446220 375135 0 28741 0 109310 16446 0 0.01 0.01 0.065 0.01 80000000 200000000 200000000 200000000 200000000 14002290 32074000 67316008 288 2374 2374 96637 112662 24960 47595 160257 140 1820 1820 56080 63220 1710 15516 78736 148 554 554 40557 49442 23250 32079 81521 1874465 272870 585824 3561566 9464458 1950974 2516696 11981153 276998 175530 267121 351662 1529534 148563 218300 1747834 199593 68534 88258 232716 888485 29164 61064 949549 147093 57913 115085 230374 667107 89271 144758 811866 1145292 186187 190915 -151118 631186 58947 59597 690783 1352857 388660 865373 4527436 11918398 2159025 2881221 14799619 -51057 -51057 -90461 -90461 -90353 -90353 -123852 -123852 -273026 -273026 -752415 -752415 -1762628 -1762628 -2892230 -2892230 -1352709 -1352709 -388106 -864819 -4486879 -4486879 -11868956 -2135775 -2849142 -2849142 -14718098 -0.11 -0.02 -0.04 -0.18 -2.04 -0.04 -0.06 -1.86 12771683 22669526 19630580 24282433 5820397 54656895 44619113 7920827 0 601542 647032 653599 668563 823077 823676 8130841 11383121 14002290 32074000 67316013 10000 5985 4015 0 598549 400 239 161 250 150 100 23942 14964 35000 216 34784 21548 110 66 44 6567 1451 869 582 86869 650 389 261 38906 44810 287 44523 28739 5000 30 4970 1593502 45528 1547974 0 1250 -1250 2993 4552862 125000 4552862 4615385 1546667 0 20127 -20127 50000 1000 49000 2012690 100000 2857 -2857 285714 0 2059 -2059 205899 87500 2500 85000 250000 -479910 -486564 6654 2793 2793 13644 13644 73907 73907 354994 354994 111835 111835 11382 11382 350000 7000 343000 700000 110000 2200 107800 220000 25000 500 24500 50000 40000 800 39200 80000 75000 1500 73500 150000 398905 7978 390927 797810 346714 346714 129684 129684 84600 84600 -222296 -222296 0 300 -300 30000 25000 500 24500 50000 256454 9354 247100 935446 87275 1746 85529 174550 187045 3741 183304 374090 354602 354602 -25553 -25553 90000 1800 88200 180000 6425 129 6296 12850 355124 7102 348022 710248 132938 132938 30150 30150 119474 119474 47908 47908 -31332 -31332 -31506 -31506 25000 2500 22500 250000 107549 4889 102660 488860 1000 6 994 4906 140 4766 599 14024 17357 1286 16071 128571 45000 3000 42000 25000 2778 22222 300000 277778 161107 161107 91504 91504 26234 26234 400000 53334 346666 5333334 110000 12941 97059 1294117 18000 2000 16000 200000 15000 1500 13500 150000 20000 4160 15840 416010 22500 1580 20920 158036 50000 5882 44118 588236 35000 5000 30000 179990 25713 154277 500000 2571285 32000 9410 22590 941034 82463 82463 9478 9478 12256 12256 1357494 1357494 147116 147116 210000 35000 175000 3500000 40000 5715 34285 571429 112500 5625 106875 562500 1000 1000 4130 4130 -128571 75000 100000 -100000 160000 -412963 412963 55000 8228 46772 822842 201250 5750 195500 575000 162500 8125 154375 812500 20000 20000 229132 229132 232000 15467 216533 1546667 8000 596 7404 59613 14000 1077 12923 107692 15000 1705 13295 170455 16000 3433 12567 343348 12000 2690 9310 269058 10000 2687 7313 268670 8500 4282 4218 428212 300000 46154 253846 4615385 19500 3000 16500 300000 268549 268549 60463 60463 10000 3497 6503 349650 39500 2633 36867 263333 300000 46154 253846 4615385 493884 32926 460958 3292557 185299 28508 156791 2850754 1125000 75000 1050000 7500000 57042 3169 53873 316898 59534 11471 48063 1147078 56584 5658 50926 565834 12000 3871 8129 387097 59590 3973 55617 397267 18000 5099 12901 509915 50000 15723 34277 1572327 22000 7407 14593 740741 93750 6250 87500 625000 9022 2837 6185 283718 11021 11021 0.0167 1.67 0.35 0.0167 0.0167 1.67 0.0167 0.0167 0.0167 1.67 1.67 0.35 0.35 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.27 0.5 0.5 0.5 0.5 0.5 0.1 0.22 0.135 0.15 0.09 0.075 0.085 0.09 0.1 0.085 0.07 0.06 0.07 0.20 0.01 0.01 0.35 0.15 0.20 0.15 0.1342 0.13 0.088 0.0466 0.0466 0.0466 0.0397 0.065 0.065 0.0286 0.15 0.15 0.065 0.15 0.065 0.18 0.052 0.10 0.032 0.031 0.15 0.07 0.0353 0.032 0.0297 2429 1214 3175 9565 457 10022 172489 0 1937638 2667300 69941 2737241 726854 151120 507126 1869940 1877750 3747690 0 65204 0 355124 69941 355124 0 0 0 476398 476398 40242 92700 30150 15553 55037 47908 56449 112031 285284 45187 330471 -15737 792 50294 50294 -18232 32062 0 0 97605 97605 -813 96792 4325 36860 22022 30148 36119 66267 0 0 0 -14957 0 -14957 411883 52437 71714 1297735 177236 1474971 297216 24383 92367 678434 111137 789571 -820681 -807783 -1781631 -5053366 -644105 -5697471 0 0 0 12258 0 12258 0 0 0 142495 0 142495 0 0 0 -154753 0 -154753 604800 213000 525500 1583966 372283 1956249 100000 0 0 100000 0 100000 14334 7462 16267 75667 0 75667 22500 0 0 219632 628000 1386000 3922805 184120 4106925 813431 856038 1895233 5331104 556403 5887507 -7249 48255 113602 122985 -87702 35283 0 52000 24500 111860 99784 211644 457300 89300 89300 546600 0 546600 0 0 50000 224000 807800 1031800 0 0 20000 20000 244890 264890 <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 1 &#8212; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Nature of Operations and Continuance of Operations</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">BioDrain Medical, Inc. (the "Company") was incorporated under the laws of the State of Minnesota in 2002. The Company has developed an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care. The Company also makes ongoing sales of our proprietary cleaning fluid to users of our systems. In April 2009, the Company received 510(k) clearance from the FDA to authorize the Company to market and sell its STREAMWAY&#174; FMS products.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and has a stockholders&#8217; deficit. These factors raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Since inception, the Company raised approximately $4,107,000 in equity and $2,178,000 in debt financing, including $1,153,000 in equity and $525,000 in convertible debt in 2011. The Company has raised approximately $184,120 in equity and $373,000 in convertible debt in the first and second quarters of 2012. The Company is currently engaged in a private placement of units of common stock and warrants. The Company is also engaged in a corporate restructuring, including actively seeking to convert indebtedness into equity. See &#8220;Part II Other Information; Item 5 Other Information&#8221;.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Recent Accounting Developments</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Valuation of Intangible Assets</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">We review identifiable intangible assets for impairment in accordance with ASC 360- Property, Plant and Equipment ("ASC 360"), whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management's best estimate of the related risks and return at the time the impairment assessment is made.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our accounting estimates and assumptions bear various risks of change, including the length of the current economic downturn facing the United States, the expansion of the slowdown in consumer spending in the U.S. medical markets despite the early expressed opinions of financial experts that the medical market would not be as affected as other markets and failure to gain acceptance in the medical market.<!-- Field: /Page --></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Accounting Policies and Estimates</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Presentation of Taxes Collected from Customers</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Sales taxes are imposed on the Company&#8217;s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company&#8217;s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Shipping and Handling</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Advertising</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Advertising costs are expensed as incurred. There were no advertising expenses in the three and six months ended June 30, 2012 and $0 and $1,100 in the three and six months ended June 30, 2011, respectively.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Research and Development</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Research and development costs are charged to operations as incurred. There were no research and development expenses in the three and six months ended June 30, 2012 and June 30, 2011.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Revenue Recognition</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company recognizes revenue in accordance with the SEC&#8217;s Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements, as amended by Staff Accounting Bulletin No. 104 (together, SAB 101), and ASC 605- Revenue Recognition.</p><p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company&#8217;s standard terms specify that shipment is FOB BioDrain and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY FMS units as well as shipments of cleaning solution kits. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company&#8217;s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer&#8217;s right of return is limited only to the Company&#8217;s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY FMS unit or significant quantities of cleaning solution kits may be returned. Additionally, since the Company buys both the STREAMWAY FMS units and cleaning solution kits from &#8220;turnkey&#8221; suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Receivables</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Receivables are reported at the amount the Company expects to collect on balances outstanding at fiscal year end. The Company has determined there will be no losses on balances outstanding at the six months ended June 30, 2012.<!-- Field: /Page --></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Inventories</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&#160;follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">June&#160;30,</td><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">December&#160;31,</td><td style="font-size: 10pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; width: 72%; font-size: 10pt;">Finished goods</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">67,498</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">94,331</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">Raw materials</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">29,294</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">3,274</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-size: 10pt;">Total</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">96,792</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">97,605</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Property and Equipment</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 86%;">&#160;</td><td style="width: 2%;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; width: 12%;">Years</td></tr><tr style="background-color: #ccffcc; vertical-align: top;"><td>Computers and office equipment</td><td>&#160;</td><td style="text-align: center;">3</td></tr><tr style="background-color: white; vertical-align: top;"><td>Furniture and fixtures</td><td>&#160;</td><td style="text-align: center;">5</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Intangible Assets</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Intangible assets consist of patent costs. These assets are not subject to amortization until the property patented is in production. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified. No impairment losses have been identified by management.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Income Taxes</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company accounts for income taxes in accordance with ASC 740- Income Taxes (&#8220;ASC 740&#8221;). Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Tax years subsequent to 2007 remain open to examination by federal and state tax authorities.<!-- Field: /Page --></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Patents and Intellectual Property</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">In June 2008, the Company completed and executed an agreement to secure exclusive ownership of the Company&#8217;s primary patent from an inventor, Marshall Ryan. Mr. Ryan received a combination of cash and warrants, and he will receive a 4% royalty on STREAMWAY FMS (the Product) sales for the life of the patent. At the signing of the agreement, Mr. Ryan received $75,000 in exchange for the exclusive assignment of the patent. In addition, on June 30, 2009, Mr. Ryan, through his Mid-State Stainless, Inc. entity, was entitled to receive $100,000 as payment (currently recorded as an account payable with the Company) for past research and development activities. Should Mr. Ryan be utilized in the future for additional product development activities, he will be compensated at a rate of $95.00 per hour.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Mr. Ryan also received a warrant, with immediate vesting, to purchase 150,000 shares of the Company's common stock at a price of $.35 per share. The warrant has a five-year term ending on June 30, 2013 and was assigned a value of $28,060 using a Black-Scholes formula. This amount was expensed as consulting expense in 2008 using a five-year expected life, a 3.73% risk-free interest rate, an expected 59% volatility and a zero dividend rate. Should there be a change in control of the Company (defined as greater than 50% of the Company&#8217;s outstanding stock or substantially all of its assets being transferred to one independent person or entity), Mr. Ryan will be owed a total of $2 million to be paid out over the life of the patent if the change in control occurs within 12 months of the first sale of the product; or $1 million to be paid out over the life of the patent if the change in control occurs between 12 and 24 months of the first sale of the product; or $500,000 to be paid out over the life of the patent if the change in control occurs between 24 and 36 months of the first sale of the product. There will be no additional payment if a change in control occurs more than 36 months after the first sale of the product.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Subsequent Events</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Board of Directors approved Joshua Kornberg as the Chief Executive Officer/President on July 22, 2012. The Board of Directors also approved David O. Johnson and Bob Myers as Chief Operating Officer and Chief Financial Officer, respectively, on July 1, 2012.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On August 13, 2012, the Company entered into an employment agreement with Joshua Kornberg, who has served as Chief Executive Officer since July 22, 2012 and who served as Interim Chief Executive Officer from April 24, 2012 to July 21, 2012.</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On August 13, 2012, the Company entered into employment agreements with David O. Johnson, who has served as Chief Operating Officer since July 1, 2012, and Bob Myers, who has who has served as Chief Financial Officer since July 1, 2012.<!-- Field: /Page --></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Adoption of 2012 Stock Incentive Plan.</i> On August 13, 2012, the Board of Directors of the Company adopted the 2012 Stock Incentive Plan (the &#8220;Plan&#8221;). The Plan became effective on that date. The Company intends to seek shareholder approval of the Plan in 2012 so that stock options may be granted under the Plan in the future that qualify as incentive stock options under the Code. The Plan is intended to replace the 2008 Equity Incentive Plan (the &#8220;2008 Plan&#8221;). Currently, options to purchase 4,263,042 shares of Common Stock are outstanding under the 2008 Plan. No further awards will be made under the 2008 Plan, although awards granted prior to August 11, 2012 continue to be governed by the 2008 Plan. See &#8220;Part II Other Information; Item 5 Other Information&#8221;.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="background-color: white; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Letter Agreement With Investors Regarding Forbearance and Dilution Protection.</i> On August 13, 2012, the Company entered into a letter agreement with Dr. Samuel Herschkowitz, his affiliate, Atlantic Partners Alliance (&#8220;APA&#8221;), and SOK Partners, LLC (&#8220;SOK&#8221;), an investment partnership. Dr. Herschkowitz and Joshua Kornberg, the Chief Executive Officer of the Company, are managers of APA and SOK Partners. Under the letter agreement, among other things, (i) Dr. Herschkowitz agreed to forbear from asserting his rights as a secured creditor to substantially all of the Company&#8217;s assets, resulting from the Company&#8217;s defaults; (ii) the Company agreed to issue shares of common stock to Dr. Herschkowitz and SOK and adjust the conversion price of their convertible notes to satisfy the Company&#8217;s obligations to protect them against dilution under a prior letter agreement; (iii) Dr. Herschkowitz and SOK agreed to extend the maturity of their notes; (iv) The Company agreed to pay certain compensation to Dr. Herschkowitz upon the achievement of financial milestones and (v) Dr. Herschkowitz clarified and waived certain of his rights, including the right to interest at a penalty rate upon default.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Private Placement of Common Stock and Warrants.</i> The Company continues to make sales of units of common stock at a price of $0.07 per share and warrants to purchase an equal number of shares at an exercise price of $0.15 per share. See Part II, Item 2, &#8220;Unregistered Sales of Equity Securities and Use of Proceeds.&#8221; The Company has raised a total of $280,000 in this private placement, selling a total of 3,999,857 shares of common stock and issuing warrants for a total of 3,999,857 shares.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Other Restructuring.</i> The Company continues an ongoing restructuring process negotiating with a significant number of creditors other than Dr. Herschkowitz and SOK to convert their indebtedness into common stock. The Company has evaluated all other subsequent events through the date of this filing. The Company does not believe there are any other subsequent events that require disclosure.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Interim Financial Statements</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company has prepared the unaudited interim financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;) and the rules and regulations of the Securities and Exchange Commission (&#8220;SEC&#8221;) for interim financial statements. These interim financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly the Company&#8217;s financial position, the results of its operations and its cash flows for the interim periods. These interim financial statements should be read in conjunction with the annual financial statements and the notes thereto contained in the Form 10-K filed with the SEC on April 16, 2012, as amended. The nature of the Company&#8217;s business is such that the results of any interim period may not be indicative of the results to be expected for the entire year.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>NOTE 2 &#8211; DEVELOPMENT STAGE OPERATIONS</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The Company was formed April 23, 2002. Since inception through December 31, 2011, 32,074,000 shares of common stock have been issued between par value and $1.67. Operations since incorporation have primarily&#160;been devoted to raising capital, obtaining financing, development of the Company&#8217;s product, and administrative services.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 2 &#8211; DEVELOPMENT STAGE OPERATIONS</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company was formed April 23, 2002. Since inception to August 13, 2012, 67,316,108 shares of common stock have been issued between par value and $1.67. Operations since incorporation have been devoted to raising capital, obtaining financing, development of the Company&#8217;s product, and administrative services.</p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2"><b>NOTE </b>3<b> &#8211; STOCKHOLDERS&#8217; DEFICIT, STOCK OPTIONS AND WARRANTS</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">In connection with the financing completed in October 2008, the Company has effected two reverse stock splits, one on June 6, 2008 and another on October 20, 2008. In accordance with SAB Topic 4C, all stock options and warrants and their related exercise prices are stated at their post-reverse stock split values.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The Company has an equity incentive plan, which allows issuance of incentive and non-qualified stock options to employees, directors and consultants of the Company, where permitted under the plan. The exercise price for each stock option is determined by the Board of Directors. Vesting requirements are determined by the Board of Directors when granted and currently range from immediate to three years. Options under this plan have terms ranging from three to ten years.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2"><i>Accounting for share-based payment</i></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The Company has adopted ASC 718- <i>Compensation-Stock Compensation</i> ("ASC 718"). Under ASC 718 stock-based employee compensation cost is recognized using the fair value based method for all new awards granted after January 1, 2006 and unvested awards outstanding at January 1, 2006. Compensation costs for unvested stock options and non-vested awards that were outstanding at January 1, 2006, are being recognized over the requisite service period based on the grant-date fair value of those options and awards, using a straight-line method. We elected the modified-prospective method under which prior periods are not retroactively restated.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model or other acceptable means. The Company uses the Black-Scholes option valuation model which requires the input of significant assumptions including an estimate of the average period of time employees will retain vested stock options before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based compensation and, consequently, the related expense recognized. The assumptions the Company uses in calculating the fair value of stock-based payment awards represent the Company's best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based compensation expense could be materially different in the future.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">Since the Company's common stock has no significant public trading history, and the Company has experienced no significant option exercises in its history, the Company is required to take an alternative approach to estimating future volatility and estimated life and the future results could vary significantly from the Company's estimates. The Company compiled historical volatilities over a period of 2 to 7 years of 15 small-cap medical companies traded on major exchanges and 10 mid-range medical companies on the OTC Bulletin Board and combined the results using a weighted average approach. In the case of ordinary options to employees the Company determined the expected life to be the midpoint between the vesting term and the legal term. In the case of options or warrants granted to non-employees, the Company estimated the life to be the legal term unless there was a compelling reason to make it shorter.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">When an option or warrant is granted in place of cash compensation for services, the Company deems the value of the service rendered to be the value of the option or warrant. In most cases, however, an option or warrant is granted in addition to other forms of compensation and its separate value is difficult to determine without utilizing an option pricing model. For that reason the Company also uses the Black-Scholes option-pricing model to value options and warrants granted to non-employees, which requires the input of significant assumptions including an estimate of the average period the investors or consultants will retain vested stock options and warrants before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options and warrants that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based consulting and/or compensation and, consequently, the related expense recognized.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">Since the Company has limited trading history in its stock and no first-hand experience with how its investors and consultants have acted in similar circumstances, the assumptions the Company uses in calculating the fair value of stock-based payment awards represent its best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based consulting and interest expense could be materially different in the future.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2"><i>Valuation and accounting for options and warrants</i></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The Company determines the grant date fair value of options and warrants using a Black-Scholes option valuation model based upon assumptions regarding risk-free interest rate, expected dividend rate, volatility and estimated term. For grants issued during 2008, the Company used a 2.0 to 4.5% risk-free interest rate, 0% dividend rate, 53-66% volatility and estimated term of 2.5 to 7.5 years. Values computed using these assumptions ranged from $.102 per share to $.336 per share. Warrants or options awarded for services rendered are expensed over the period of service (normally the vesting period) as compensation expense for employees or an appropriate consulting expense category for awards to consultants and directors. Warrants granted in connection with a common equity financing are included in stockholders&#8217; equity, provided that there is no re-pricing provision that requires them to be treated as a liability (See Note 10) and warrants granted in connection with a debt financing are treated as a debt discount and amortized using the interest method as interest expense over the term of the debt.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">Warrants issued in connection with the $100,000 convertible debt that&#160;closed March 1, 2007 created a debt discount of $40,242 that is being amortized as additional interest over its 5-year term. Warrants issued in connection with the $170,000 convertible &#8220;bridge&#8221; debt that&#160;closed in July 2007 created a calculated debt discount of $92,700 that was fully expensed over its loan term that matured April 30, 2008.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The Company issued $100,000 in convertible debt in October 2009 and issued a warrant, in connection with the debt, for 200,000 shares of common stock at $.65 per share. The Company determined that the warrant had an initial value of $30,150 that was treated as a debt discount and amortized as additional interest expense over the 24-month term of the note.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The Company also issued $200,000 in convertible debt in June 2010 and issued a warrant, in connection with the debt, to purchase 1,111,112 shares of common stock at $.46 per share. The Company determined that the value of the June 2010 warrant is $96,613.This value is treated as a debt discount and amortized as additional interest expense over the 22-month term of the note.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The Company also issued $32,000 in convertible debt in September 2010 and issued a warrant to purchase 320,000 shares of common stock at $.18 per share.&#160; The Company determined that this warrant has a value of $15,553 that was treated as a debt discount and amortized as additional interest expense over the 18-month term of the note.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The Company also issued $16,800 in convertible debt in December 2010 and issued a warrant to purchase 200,000 shares of common stock at $.084 per share. The Company determined that this warrant has a value of $7,232 that was treated as a debt discount and amortized as additional interest expense over the 24- month term of the note.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">In January 2011, the Company issued three convertible notes of $50,000 each and also issued warrants to purchase 1,595,239 common shares at $.20 per share. The value of the warrants was determined to be $47,908 and is being treated as a debt discount and amortized as additional interest expense over the 24-month term of the notes.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">For grants of stock options and warrants in 2011 the Company used a 0.34 to 2.44% risk-free interest rate, 0% dividend rate, 54-66% volatility and estimated term of 3 to 10 years. Values computed using these assumptions ranged from $0.0126 to $0.3412 per share.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The following summarizes transactions for stock options and warrants for the periods indicated:</font></p> <p style="margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <table style="width: 92%; border-collapse: collapse; margin-left: 0.5in; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 0in 0in 0in;" class="msonormaltable" border="0" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="6" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Stock&#160;Options&#160;(</b>1<b>)</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="6" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Warrants&#160;(</b>1<b>)</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Number&#160;of<br />Shares</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Average<br />Exercise<br />Price</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Number&#160;of<br />Shares</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Average<br />Exercise<br />Price</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> </tr> <tr style="mso-yfti-irow: 2;"> <td style="width: 48%; background: #ccffcc; padding: 0in;" valign="bottom" width="48%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Outstanding at December 31, 2005</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 10%; background: #ccffcc; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">17,956</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="width: 10%; background: #ccffcc; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.67</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 10%; background: #ccffcc; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">20,950</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="width: 10%; background: #ccffcc; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.62</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 3;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 4;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Issued</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">23,942</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.67</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">71,826</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: #ccffcc; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: #ccffcc; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.85</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 5;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 6;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Outstanding at December 31, 2006</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">41,898</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.67</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">92,776</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.25</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 7;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 8;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Issued</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,984</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.67</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">28,502</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: #ccffcc; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: #ccffcc; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.35</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 9;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 10;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Outstanding at December 31, 2007</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">47,882</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.67</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">121,278</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.04</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 11;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 12;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Issued</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1,243,292</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.20</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,075,204</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.45</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 13;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Expired</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">(11,971</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">)</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">3.76</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 14;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 15;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Outstanding at December 31, 2008</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1,291,174</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.26</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,184,511</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.45</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 16;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 17;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Issued</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">205,000</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.37</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,188,302</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.65</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 18;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 19;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Outstanding at December 31, 2009</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1,496,174</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.27</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">7,372,813</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.49</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 20;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 21;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Issued</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,210,000</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.17</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">3,435,662</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.34</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 22;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Expired</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">(207,956</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">)</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.43</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">(8,979</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">)</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.67</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 23;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Exercised</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">(128,571</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">)</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.46</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 24;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 25;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Outstanding at December 31, 2010</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">3,498,218</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.19</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">10,670,925</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.44</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 26;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 27;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Issued</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,483,334</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.01</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">18,222,243</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.14</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 28;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Expired</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">(83,941</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">)</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.73</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">(2,010,917</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">)</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.48</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 29;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Exercised</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">(100,000</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">)</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.01</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 30; mso-yfti-lastrow: yes;"> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Outstanding at December 31, 2011</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,797,611</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.11</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">26,882,251</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; background: #ccffcc; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; background: #ccffcc; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.23</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> </table> <p style="margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <table style="width: 100%; border-collapse: collapse; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 0in 0in 0in;" class="msonormaltable" border="0" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes;"> <td style="width: 0.5in; padding: 0in;" valign="top" width="48"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 0.25in; padding: 0in;" valign="top" width="24"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">(1)</font></p> </td> <td style="padding: 0in;" valign="top"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Adjusted for the reverse stock splits in total at June 6, 2008 and October 20, 2008.</font></p> </td> </tr> </table> <p style="margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">At December 31, 2011, 4,888,660 stock options are fully vested and currently exercisable with a weighted average exercise price of $0.13 and a weighted average remaining term of 9.24 years. There are 26,882,251 warrants that are fully vested and exercisable. Stock-based compensation recognized in 2011 and 2010 was $1,937,638 and $172,489, respectively. The Company has $130,123 of unrecognized compensation expense related to non-vested stock options that are expected to be recognized over a weighted average period of approximately 2 years.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The following summarizes the status of options and warrants outstanding at December 31, 2011:</font></p> <p style="margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <table style="width: 92%; border-collapse: collapse; margin-left: 0.5in; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 0in 0in 0in;" class="msonormaltable" border="0" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="border-bottom: black 1pt solid; border-left: medium none; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom" colspan="4" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Range&#160;of&#160;Exercise&#160;Prices</b></font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Shares</b></font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>Weighted<br />Average<br />Remaining<br />Life</b></font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2"><b>&#160;</b></font></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom" colspan="2"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Options:</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 2;"> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="width: 16%; background: white; padding: 0in;" valign="bottom" width="16%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.01</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 445%; background: white; padding: 0in;" valign="bottom" width="445%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 16%; background: white; padding: 0in;" valign="bottom" width="16%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,926,626</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 16%; background: white; padding: 0in;" valign="bottom" width="16%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">8.97</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 3;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.15</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,060,000</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">8.60</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 4;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.35</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">775,000</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.55</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 5;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.50</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">30,000</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.87</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 6;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.67</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,985</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.87</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 7;"> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom" colspan="2"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Total</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,797,611</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 8;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 9;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom" colspan="2"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Warrants:</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 10;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.01</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">200,000</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">3.94</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 11;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.02</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">71,826</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.45</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 12;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.075</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">4,657,745</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.52</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 13;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.10</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,328,572</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.93</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 14;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.12</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">500,000</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.33</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 15;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.13</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">631,429</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.78</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 16;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.15</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,333,334</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.16</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 17;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.16</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">500,000</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.27</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 18;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.17</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1,882,353</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.27</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 19;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.18</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">200,000</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.11</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 20;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.20</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,445,239</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.05</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 21;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.25</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1,375,000</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2.74</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 22;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.35</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">998,597</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.49</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 23;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.46</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">4,028,606</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.95</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 24;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.65</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1,729,550</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">0.66</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 25; mso-yfti-lastrow: yes;"> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom" colspan="2"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Total</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">26,882,251</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> </table> <p style="margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">Stock options and warrants expire on various dates from February 2012 to July 2021.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">Under the&#160;terms of the Company's agreement with investors in the October 2008 financing, 1,920,000 shares of common stock were the maximum number of shares allocated to the Company's existing shareholders at the time of the offering (also referred to as the original shareholders or the "Founders"). Since the total of the Company's fully diluted shares of common stock was greater than 1,920,000 shares, in order for the Company to proceed with the offering, the Board of Directors approved a reverse stock split of 1-for-1.2545. After this split was approved, additional options and warrants were identified, requiring a second reverse stock split in order to reach the 1,920,000 shares. The second reverse stock split on the reduced 1-for-1.2545 balance was determined to be 1-for-1.33176963. Taken together, if only one reverse stock split was performed, the number would have been a reverse stock split of 1-for-1.670705.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">On June 6, 2008, the Board of Directors approved the first reverse stock split. The authorized number of shares of common stock of 20,000,000 was proportionately divided by 1.2545 to arrive at 15,942,607.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">On October 20, 2008, the Board of Directors (i) approved the second reverse stock split pursuant to which the authorized number of shares of common stock of 15,942,607 was proportionately divided by 1.33177 to arrive at 11,970,994 shares and (ii) approved a resolution to increase the number of authorized shares of the Company's common stock from 11,970,994 to 40,000,000, which was approved by the Company&#8217;s shareholders holding a majority of the shares entitled to vote thereon at a special meeting of shareholders held on December 3, 2008.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The shareholders approved an increase in authorized shares to 80 million shares in an annual shareholder meeting held on June 22, 2010 and approved an increase in authorized shares to 200 million shares in a special shareholder meeting held on September 7, 2011.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2"><b>Stock Options and Warrants Granted by the Company</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">The following table is the listing of stock options and warrants as of December 31, 2011 by year of grant:</font></p> <p align="center" style="text-align: center; margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;" size="2">Stock Options:</font></p> <table style="width: 92%; border-collapse: collapse; margin-left: 0.5in; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 0in 0in 0in;" class="msonormaltable" border="0" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="border-bottom: black 1pt solid; border-left: medium none; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Year</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" colspan="2"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2">Shares</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom" colspan="2"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2">Price</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2006</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">-</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">-</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 2;"> <td style="width: 74%; background: white; padding: 0in;" valign="bottom" width="74%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2007</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 10%; background: white; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,985</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 10%; background: white; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1.67</font></p> </td> <td style="width: 1%; background: white; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 3;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2008</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">1,243,292</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.01-.35</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 4;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2009</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">105,000</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.35-.50</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 5;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2010</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,060,000</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.15</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 6;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2011</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,383,334</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.01</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 7; mso-yfti-lastrow: yes;"> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;Total</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">5,797,611</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.01-1.67</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> </table> <p style="margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> <table style="width: 92%; border-collapse: collapse; margin-left: 0.5in; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 0in 0in 0in;" class="msonormaltable" border="0" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Warrants:</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Year</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" colspan="2"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2">Shares</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom" colspan="2"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;" size="2">Price</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 2;"> <td style="width: 74%; background: #ccffcc; padding: 0in;" valign="bottom" width="74%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2006</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 10%; background: #ccffcc; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">35,913</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="width: 10%; background: #ccffcc; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.02</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 3;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2007</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">28,502</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.35</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 4;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2008</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,971,629</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.02-.46</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 5;"> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2009</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">2,188,302</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.13-.65</font></p> </td> <td style="background: white; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 6;"> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2010</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">3,435,662</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.01-.65</font></p> </td> <td style="background: #ccffcc; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 7;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">2011</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">18,222,243</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.075-.25</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 8; mso-yfti-lastrow: yes;"> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">Total</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">26,882,251</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">$</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;" size="2">.01-1.67</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;" size="2">&#160;</font></p> </td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 3 &#8211; STOCKHOLDERS&#8217; DEFICIT, STOCK OPTIONS AND WARRANTS</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">In connection with the financing completed in October 2008, the Company has affected two reverse stock splits, one on June 6, 2008 and another on October 20, 2008. In accordance with SAB Topic 4C, all stock options and warrants and their related exercise prices are stated at their post-reverse stock split values.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">In 2008, the Company adopted the 2008 Equity Incentive Plan (the &#8220;2008 Plan&#8221;), which allows issuance of incentive and non-qualified stock options to employees, directors and consultants of the Company, where permitted under the plan. The exercise price for each stock option is determined by the Board of Directors. Vesting requirements are determined by the Board of Directors when granted and currently range from immediate to three years. Options under this plan have terms ranging from three to ten years. Following the adoption of the 2012 Plan in August 2012, the Company is no longer making awards under the 2008 Plan; however, the 2008 Plan continues to govern outstanding stock options under the 2008 Plan.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Accounting for share-based payment</i></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company has adopted ASC 718- Compensation-Stock Compensation ("ASC 718"). Under ASC 718 stock-based employee compensation cost is recognized using the fair value based method for all new awards granted after January 1, 2006 and unvested awards outstanding at January 1, 2006. Compensation costs for unvested stock options and non-vested awards that were outstanding at January 1, 2006, are being recognized over the requisite service period based on the grant-date fair value of those options and awards, using a straight-line method. We elected the modified-prospective method under which prior periods are not retroactively restated.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model or other acceptable means. The Company uses the Black-Scholes option valuation model which requires the input of significant assumptions including an estimate of the average period of time employees will retain vested stock options before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based compensation and, consequently, the related expense recognized. The assumptions the Company uses in calculating the fair value of stock-based payment awards represent the Company's best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based compensation expense could be materially different in the future.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Since the Company's common stock has no significant public trading history, and the Company has experienced no significant option exercises in its history, the Company is required to take an alternative approach to estimating future volatility and estimated life and the future results could vary significantly from the Company's estimates. The Company compiled historical volatilities over a period of 2 to 7 years of 15 small-cap medical companies traded on major exchanges and 10 mid-range medical companies on the OTC Bulletin Board and combined the results using a weighted average approach. In the case of ordinary options to employees the Company determined the expected life to be the midpoint between the vesting term and the legal term. In the case of options or warrants granted to non-employees, the Company estimated the life to be the legal term unless there was a compelling reason to make it shorter.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">When an option or warrant is granted in place of cash compensation for services, the Company deems the value of the service rendered to be the value of the option or warrant. In most cases, however, an option or warrant is granted in addition to other forms of compensation and its separate value is difficult to determine without utilizing an option pricing model. For that reason the Company also uses the Black-Scholes option-pricing model to value options and warrants granted to non-employees, which requires the input of significant assumptions including an estimate of the average period the investors or consultants will retain vested stock options and warrants before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options and warrants that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based consulting and/or compensation and, consequently, the related expense recognized.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Since the Company has limited trading history in its stock and no first-hand experience with how its investors and consultants have acted in similar circumstances, the assumptions the Company uses in calculating the fair value of stock-based payment awards represent its best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based consulting and interest expense could be materially different in the future.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Valuation and accounting for options and warrants</i></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company determines the grant date fair value of options and warrants using a Black-Scholes option valuation model based upon assumptions regarding risk-free interest rate, expected dividend rate, volatility and estimated term. For grants issued during 2008, the Company used a 2.0 to 4.5% risk-free interest rate, 0% dividend rate, 53-66% volatility and estimated term of 2.5 to 7.5 years. Values computed using these assumptions ranged from $.0166 per share to $.341 per share. Warrants or options awarded for services rendered are expensed over the period of service (normally the vesting period) as compensation expense for employees or an appropriate consulting expense category for awards to consultants and directors. Warrants granted in connection with a common equity financing are included in stockholders&#8217; equity, provided that there is no re-pricing provision that requires them to be treated as a liability (See Note 10) and warrants granted in connection with a debt financing are treated as a debt discount and amortized using the interest method as interest expense over the term of the debt.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Warrants issued in connection with the $100,000 convertible debt that&#160;closed March 1, 2007 created a debt discount of $40,242 that is being amortized as additional interest over its 5-year term. Warrants issued in connection with the $170,000 convertible &#8220;bridge&#8221; debt that&#160;closed in July 2007 created a calculated debt discount of $92,700 that was fully expensed over its loan term that matured April 30, 2008.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company issued $100,000 in convertible debt in October 2009 and issued a warrant, in connection with the debt, for 200,000 shares of common stock at $.65 per share. The Company determined that the warrant had an initial value of $30,150 that was treated as a debt discount and amortized as additional interest expense over the 24-month term of the note.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company also issued $200,000 in convertible debt in June 2010 and issued a warrant, in connection with the debt, to purchase 1,111,112 shares of common stock at $.46 per share. The Company determined that the value of the June 2010 warrant is $96,613.This value is treated as a debt discount and amortized as additional interest expense over the 22-month term of the note.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company also issued $32,000 in convertible debt in September 2010 and issued a warrant to purchase 320,000 shares of common stock at $.18 per share.&#160; The Company determined that this warrant has a value of $15,553 that was treated as a debt discount and amortized as additional interest expense over the 18-month term of the note.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company also issued $16,800 in convertible debt in December 2010 and issued a warrant to purchase 200,000 shares of common stock at $.084 per share. The Company determined that this warrant has a value of $7,232 that was treated as a debt discount and amortized as additional interest expense over the 24- month term of the note.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">In January 2011, the Company issued three convertible notes of $50,000 each and also issued warrants to purchase 1,595,239 common shares at $.20 per share. The value of the warrants was determined to be $47,908 and is being treated as a debt discount and amortized as additional interest expense over the 24-month term of the notes.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">For grants of stock options and warrants in 2011 the Company used a 0.34 to 2.44% risk-free interest rate, 0% dividend rate, 54-66% volatility and estimated term of 3 to 10 years. Values computed using these assumptions ranged from $0.0126 to $0.3412 per share.&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">For grants of stock options and warrants in 2012 the Company used a 0.38% risk-free interest rate, 0% dividend rate, 54% volatility and estimated terms of 3 and 5 years. Value computed using these assumptions were $0.1090 to $0.15, respectively.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following summarizes transactions for stock options and warrants for the periods indicated:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; font-weight: bold;" colspan="6">Stock&#160;Options&#160;(1)</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; font-weight: bold;" colspan="6">Warrants&#160;(1)</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Number&#160;of</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Shares</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Average</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Exercise</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Price</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Number&#160;of</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Shares</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Average</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Exercise</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Price</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; width: 42%; padding-right: 0px;">Outstanding at December 31, 2005</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">17,956</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 2%; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">20,950</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 2%; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">2.62</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">23,942</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">71,826</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.85</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2006</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">41,898</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">92,776</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.25</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">5,984</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">28,502</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.35</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2007</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">47,882</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">121,278</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.04</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,243,292</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.20</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">5,075,204</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.45</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">(11,971</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">3.76</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2008</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,291,174</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.26</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">5,184,511</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.45</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">205,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.37</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">2,188,302</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.65</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2009</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,496,174</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.27</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">7,372,813</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.49</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,210,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.17</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3,435,662</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.34</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(207,956</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.43</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(8,979</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Exercised</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">(128,571</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.46</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2010</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3,498,218</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.19</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">10,670,925</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.44</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,483,334</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.01</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">18,222,243</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.14</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(83,941</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.73</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(2,010,917</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.48</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Exercised</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(100,000</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.01</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2011</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">5,797,611</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.11</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">26,882,251</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.23</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 87,500</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.20</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; (382,716</td><td style="padding-bottom: 0px; padding-right: 0px;">)&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.01</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;"></td><td style="padding-bottom: 0px; padding-right: 0px;"></td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(648,597</td><td style="padding-bottom: 0px; padding-right: 0px;">)&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.35</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Exercised</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="vertical-align: top;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at March 31, 2012</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;5,414,895</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.12</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">26,321,154</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.21</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc;"><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr><tr><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,601,285</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.15</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr><tr style="background-color: #ccffcc;"><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160; &#160;&#160;&#160;&#160;(345,679</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">)&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.01</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (1,170,000</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">)</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.62</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr><tr><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">Exercised</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; (412,963</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">)&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.01</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr><tr style="background-color: #ccffcc;"><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">Outstanding at June 30, 2012</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2pt double; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160; 4,656,253</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2.5pt double; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;0.13</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2pt double; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: center; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;27,752,439</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2.5pt double; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.19</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 4%; padding-right: 0.8pt;">(1)</td><td style="width: 93%; padding-right: 0.8pt;">Adjusted for the reverse stock splits in total at June 6, 2008 and October 20, 2008.</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">At June 30, 2012, 4,540,212 stock options are fully vested and currently exercisable with a weighted average exercise price of $0.13 and a weighted average remaining term of 2.15 years. All warrants are fully vested and exercisable. Stock-based compensation recognized for the six months ending June 2012 and June 2011 was $69,941 and $65,204, respectively. The Company has $39,491 of unrecognized compensation expense related to non-vested stock options that are expected to be recognized over a weighted average period of approximately 2 years as of June 2012.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following summarizes the status of options and warrants outstanding at June 30, 2012:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; font-weight: bold;" colspan="3">Range&#160;of&#160;Exercise&#160;Prices</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; font-weight: bold;" colspan="2">Shares</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Weighted</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Average</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Remaining</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Life</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">Options:</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; width: 5%; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; width: 3%; padding-right: 0px;">0.01</td><td style="padding-bottom: 0px; width: 62%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">1,785,268</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 3%; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">3.82</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.15</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,060,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.88</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.35</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">775,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.87</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.50</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">30,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.37</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">5,985</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.37</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">Total</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 2.25pt double; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 2.25pt double; text-align: right; padding-bottom: 0px; padding-right: 0px;">4,656,253</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">Warrants:</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.01</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">200,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3.44</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.02</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">71,826</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.95</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.075</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">8,657,746</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.84</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.10</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,328,572</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.39</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.12</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">500,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.84</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.13</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">631,429</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.89</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.15</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3,934,618</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3.40</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.16</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">500,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.77</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.17</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,882,353</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.77</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.18</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">200,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.61</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.20</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,532,739</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.58</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.25</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,375,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2.24</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.35</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">350,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.61</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.46</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3,828,606</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.60</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.65</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">759,550</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.59</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">Total</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 2pt double; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-right: 0px;">27,752,439</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Stock options and warrants expire on various dates from July 2012 to July 2021.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Under the&#160;terms of the Company's agreement with investors in the October 2008 financing, 1,920,000 shares of common stock were the maximum number of shares allocated to the Company's existing shareholders at the time of the offering (also referred to as the original shareholders or the "Founders"). Since the total of the Company's fully diluted shares of common stock was greater than 1,920,000 shares, in order for the Company to proceed with the offering, the Board of Directors approved a reverse stock split of 1-for-1.2545. After this split was approved, additional options and warrants were identified, requiring a second reverse stock split in order to reach the 1,920,000 shares. The second reverse stock split on the reduced 1-for-1.2545 balance was determined to be 1-for-1.33176963. Taken together, if only one reverse stock split was performed, the number would have been a reverse stock split of 1-for-1.670705.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">On June 6, 2008, the Board of Directors approved the first reverse stock split. The authorized number of shares of common stock of 20,000,000 was proportionately divided by 1.2545 to arrive at 15,942,607.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">On October 20, 2008, the Board of Directors (i) approved the second reverse stock split pursuant to which the authorized number of shares of common stock of 15,942,607 was proportionately divided by 1.33177 to arrive at 11,970,994 shares and (ii) approved a resolution to increase the number of authorized shares of the Company's common stock from 11,970,994 to 40,000,000, which was approved by the Company&#8217;s shareholders holding a majority of the shares entitled to vote thereon at a special meeting of shareholders held on December 3, 2008.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The shareholders approved an increase in authorized shares to 80 million shares in an annual shareholder meeting held on June 22, 2010 and approved an increase in authorized shares to 200 million shares in a special shareholder meeting held on September 7, 2011.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b>&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Stock, Stock Options and Warrants Granted by the Company</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table is the listing of stock options and warrants as of June 30, 2012 by year of grant:</p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;"></p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">Stock Options:&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td></tr><tr><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">Year&#160;</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">Shares</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">Price</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 60%; font-size: 10pt;">2007</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: right; width: 15%; font-size: 10pt;">5,985</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 15%; font-size: 10pt;">1.67</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2008</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">1,243,292</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.01-.35</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2009</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">105,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.35-.50</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2010</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">2,060,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.15</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2011</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">1,241,976</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.01</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">2012</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;Total</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">4,656,253</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">.01-1.67</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td></tr></table><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;"></p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;"></p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">Warrants:</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">Year</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">Shares&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">Price</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 60%; font-size: 10pt;">2006</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: right; width: 15%; font-size: 10pt;">35,913</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 15%; font-size: 10pt;">.02</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2007</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2008</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">2,771,629</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.02-.46</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2009</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">598,207</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.13-.65</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2010</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">3,435,662</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.01-.65</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2011</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">18,222,243</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.075-.25</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">2012</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,688,785</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">.15-.20</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">Total</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">27,752,439</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">.01-1.67</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>NOTE 4 - LOSS PER SHARE</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The following table presents the shares used in the basic and diluted loss per common share computations:</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td nowrap="nowrap">&#160;</td> <td colspan="2" nowrap="nowrap">&#160;</td> <td nowrap="nowrap">&#160;</td> <td nowrap="nowrap">&#160;</td> <td colspan="2" nowrap="nowrap">&#160;</td> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">From</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="6" nowrap="nowrap">Year&#160;Ended</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">April&#160;23,&#160;2002</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="6" nowrap="nowrap">December&#160;31,</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">(Inception)&#160;To</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,&#160;2011</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Numerator:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; width: 61%;">Net loss available in basic and diluted calculation</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">(4,486,879</td> <td style="text-align: left; width: 1%;">)</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">(1,352,709</td> <td style="text-align: left; width: 1%;">)</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">(11,868,956</td> <td style="text-align: left; width: 1%;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Denominator:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Weighted average common shares outstanding-basic</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">24,282,433</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">12,771,683</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,805,714</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Effect of dilutive stock options and warrants (1)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Weighted average common shares outstanding-diluted</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">24,282,433</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">12,771,683</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">5,805,714</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Loss per common share-basic and diluted</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">(0.18</td> <td style="text-align: left; padding-bottom: 2.5pt;">)</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">(0.11</td> <td style="text-align: left; padding-bottom: 2.5pt;">)</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">(2.04</td> <td style="text-align: left; padding-bottom: 2.5pt;">)</td> </tr> </table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">(1) The number of shares underlying options and warrants outstanding as of December 31, 2011 and December 31, 2010 are 32,679,862 and 14,169,143, 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.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 4 - LOSS PER SHARE</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table presents the shares used in the basic and diluted loss per common share computations:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="6">Three Months Ended June 30,</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="6">Six Months Ended June 30,</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">Period from April 23, 2002 (Inception) to June 30,</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2012</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2011</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2012</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2011</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2012</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">Numerator:</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; width: 30%; font-size: 10pt;">Net loss available in basic and diluted calculation</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(2,135,775</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(388,106</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(2,849,142</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(864,819</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(14,718,098</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0in; font-size: 10pt;">Denominator:</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;">Weighted average common shares outstanding-basic</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">54,656,895</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">22,659,526</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">44,619,113</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">19,630,580</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">7,920,827</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;">Effect of diluted stock options and warrants (1)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;">Weighted average common shares outstanding-diluted</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">54,656,895</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">22,659,526</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">44,619,113</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">19,630,580</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">7,920,827</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;">Loss per common share-basic and diluted</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(0.04</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(0.02</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(0.06</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(0.04</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(1.86</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">(1) 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.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>NOTE 5 &#8211; INCOME TAXES</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The provision for income taxes consists of an amount for taxes currently payable and a provision for tax consequences deferred to future periods.&#160; Deferred income taxes are 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.&#160; Deferred income 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.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">There is no income tax provision in the accompanying statements of operations due to the cumulative operating losses that indicate a 100% valuation allowance for the deferred tax assets and state income taxes is appropriate.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Federal and state income tax return operating loss carryovers as of December 31, 2011, were approximately $11,254,000 and will begin to expire in 2017.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The valuation allowance has been recorded due to the uncertainty of realization of the benefits associated with the net operating losses. Future events and changes in circumstances could cause this valuation allowance to change.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The components of deferred income taxes at December 31, 2011 and December 31, 2010 are as follows:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="color: black;" nowrap="nowrap">&#160;</td> <td style="text-align: center; color: black;" colspan="2" nowrap="nowrap"><font style="color: black;"><b>December&#160;31</b>,</font></td> <td style="color: black;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Deferred Tax Asset:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; width: 74%;">Net Operating Loss</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">2,626,000</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">1,579,000</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Other</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">49,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">56,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Total Deferred Tax Asset</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,675,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,635,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">Less Valuation Allowance</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">2,675,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">1,635,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Net Deferred Income Taxes</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 5 &#8211; INCOME TAXES</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The provision for income taxes consists of an amount for taxes currently payable and a provision for tax consequences deferred to future periods.&#160; Deferred income taxes are 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.&#160; Deferred income 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.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">There is no income tax provision in the accompanying statements of operations due to the cumulative operating losses that indicate a 100% valuation allowance for the deferred tax assets and state income taxes is appropriate.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Federal and state income tax return operating loss carryovers as of June 30, 2012, were approximately $14,104,000 and will begin to expire in 2017.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The valuation allowance has been recorded due to the uncertainty of realization of the benefits associated with the net operating losses. Future events and changes in circumstances could cause this valuation allowance to change.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The components of deferred income taxes at June 30, 2012 and December 31, 2011 are as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">June&#160;30,</td><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">December&#160;31,</td><td style="font-size: 10pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">Deferred Tax Asset:</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; width: 72%; font-size: 10pt;">Net Operating Loss</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">3,290,000</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">2,626,000</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 1pt; font-size: 10pt;">Other</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">57,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">49,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">Total Deferred Tax Asset</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">3,347,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">2,675,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">Less Valuation Allowance</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">3,347,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,675,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">Net Deferred Income Taxes</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">&#8212;</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">&#8212;</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>NOTE 8 &#8211; LONG-TERM DEBT</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Long-term debt is as follows:</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,<br />2011</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,<br />2010</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 74%;">Note payable to bank in monthly installments of $1,275/including variable interest at 2% above the prevailing prime rate (3.25% at December 31, 2010). The final payment under the note was made in September 2011. The note was personally guaranteed by former executives of the Company.</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">&#8212;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">10,267</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Notes payable to two individuals, net of discounts of $1,341 and $9,390 with interest only payments at 12% to March 2012 when the remaining balance is payable. The notes are convertible into 285,715 shares of common stock in the Company at $.35 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">98,659</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">90,610</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on October 26, 2009 to the parents of one of the Company's directors, net of a discount of $0 and $12,360 discount, with interest at 8% to March 31, 2012 when the remaining balance is payable and convertible into shares of common stock at $.35 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">87,640</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Notes payable issued to two individuals in January 2010. The notes bear interest at 8%, mature March 31, 2012 and are convertible into shares of common stock at 50% of the weighted average closing bid price over any 10 consecutive days of trading.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on June 12, 2010 to the parents of one of the Company's directors, net of a discount of $14,931 and $67,629. The note bears interest at 12% to March 31, 2012 when the remaining balance is payable, and is convertible into shares of common stock at $.18 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">185,069</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">132,371</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on August 2, 2010 to an institutional investor. The note accrued interest at 8%, matured May 4, 2011 and&#160;was convertible into shares of common stock at 50% of the average of the three lowest closing prices in any 10 day trading period. $20,000 was converted in the three months ended March 31, 2011 and $30,000, plus accrued interest, was converted in the three months ended June 30, 2011.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">50,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on June 14, 2011 to an institutional investor.&#160; The note bears interest at 8%, matures June 14, 2012 and is convertible into shares of common stock at 55% of the average of the five lowest closing prices in any 10 day trading period.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">63,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on July 12, 2011 to an institutional investor.&#160; The note bears interest at 8%, matures April 16, 2012 and is convertible into shares of common stock at 60% of the average of the five lowest closing prices in any 10 day trading period.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">37,500</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on September 16, 2010 to an institutional investor.&#160; The note bears interest at 10%, matures March 15, 2012 and is convertible into shares of common stock at $.18 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on December 23, 2010 to the parents of one of the Company&#8217;s directors, net of a discount of $4,960 and $7,229.&#160; The note bears interest at 10%, matures December 23, 2012 and is convertible into shares of common stock at $.084 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">11,840</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">9,571</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on December 31, 2010 to a law firm that accepted this note in full payment of their past due legal fees.&#160; The note bears interest at 6%, matures December 31, 2014 and is convertible into shares of common stock at $.15 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">457,300</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">457,300</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on December 23, 2010 to a private investor. The note matured April 30, 2011, is paid,&#160;and accrued interest at 10%.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on September 21, 2010 to the parents of one of the Company&#8217;s directors, net of a discount of $0 and $12,702.&#160; The note bears interest at 12%, matures&#160;March 30, 2012 and is convertible into shares of common stock at $.18 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">32,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">19,298</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Notes payable issued in January 2011 to three individuals, net of a debt discount of $23,954. The notes bear interest at 10%, have a 24-month term and are convertible into shares of common stock at $0.084 to $0.10 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">126,046</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued January 1, 2011 to a law firm that accepted this note in full payment of their past due legal fees.&#160; The note bears interest at 6%, matures January 1, 2015 and is convertible into shares of common stock at $.15 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">89,300</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">On November 18, 2011 the Company issued a convertible note with an institutional investor at 8% interest convertible into common stock at 60% of the average of the five lowest closing prices in any ten day trading period. The note matures on August 21, 2012.</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">50,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Total</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,450,714</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,063,056</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">Less amount due within one year</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">820,561</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">66,267</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 2.5pt;">Long-Term Debt</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">630,153</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">996,789</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Cash payments for interest were $280 and $967 for 2011 and 2010, respectively.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Principal payments required during the years 2012 to 2015 are as follows:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 87%;">2012</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">1,084,300</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2013</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">2014</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">457,300</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2015</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">89,300</td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE&#160;6 &#8211; LONG-TERM DEBT</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Long-term debt is as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;&#160;&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font: bold 10pt times new roman, times, serif;">&#160;</td><td style="text-align: center; font: bold 10pt times new roman, times, serif;" colspan="2">June&#160;30, <br />2012</td><td style="font: bold 10pt times new roman, times, serif;">&#160;</td><td style="font: bold 10pt times new roman, times, serif;">&#160;</td><td style="text-align: center; font: bold 10pt times new roman, times, serif;" colspan="2">December&#160;31, <br />2011</td><td style="font: bold 10pt times new roman, times, serif;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; width: 72%; font-size: 10pt;">Notes payable to two individuals, net of discounts of $0 and $1,341 with interest only payments at 12% to March 2012 when the remaining balance was payable. The notes are convertible into 285,715 shares of common stock in the Company at $.35 per share.</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: right; width: 10%; font-size: 10pt;">100,000</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: right; width: 10%; font-size: 10pt;">98,659</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on October 26, 2009 to the parents of one the Company&#8217;s former directors. The note bears interest at 8%, matured on March 31, 2012 and is convertible into shares of common stock at $.35 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Notes payable issued to two individuals in January, 2010. The notes bear interest at 8% and matured on March 31, 2012. &#160;The notes were converted into shares of common stock.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on June 12, 2010 to the parents of one of the Company's former directors, net of a discount of $0 and $14,931. The note bears interest at 12%, matured on March 31, 2012, and is convertible into common stock at $.18 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">200,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">185,069</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">Note payable issued on June 14, 2011 to an institutional investor.&#160; The note accrued interest at 8%, during the three months ended March 31, 2012. The note was converted into shares of common stock.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">63,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">Note payable issued on July 12, 2011 to an institutional investor.&#160; The note bears interest at 8%, matured on April 16, 2012. &#160;The note was converted into shares of common stock.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">37,500</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on September 16, 2010 to an institutional investor.&#160; The note bears interest at 10%, matured on March 15, 2012 and is convertible into common stock at $.18 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on December 23, 2010 to the parents of one of our former directors, net of a discount of $0 and $4,960.&#160; The note bears interest at 12%, matures December 23, 2012 and is convertible into common stock at $.084 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">16,800</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">11,840</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued December 31, 2010 to a law firm that accepted this note in full payment of their past due legal fees.&#160; The Note had interest at 6%. The note was converted into shares of common stock.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">457,300</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on September 21, 2010 to the parents of one of our former directors, net of a discount of $0 and $0.&#160; The note bears interest at 12%, matures&#160;December 23, 2012 and is convertible into shares of common stock at $.18 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">32,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">32,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Notes payable issued in January 2011 to three individuals, net of a debt discount of $0 and $23,954. The notes bear interest at 10%, have a 24 month term and are convertible into common stock at $0.084 to $0.10 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">50,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">126,046</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued January 1, 2011 to a law firm that accepted this note in full payment of their past due legal fees.&#160; The Note bears interest at 6%, matures December 31, 2014 and is convertible into common stock at $.15 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">89,300</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">89,300</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">On November 18, 2011 the Company issued a convertible note with an institutional investor at 8% interest. The note was converted into shares of common stock.</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">50,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">Note payable issued in 2006, and then extended to March 31, 2012, to an investor for $.35 per share of common stock, the note bears interest at 10.25%</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">10,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">10,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Total</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">$</td><td style="text-align: right; font-size: 10pt;">698,100</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">$</td><td style="text-align: right; font-size: 10pt;">1,460,714</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Less amount due within one year &#8211; (1)</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">608,800</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">830,561</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Long-Term Debt</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">89,300</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">630,153</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white;"><td style="text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">(1) 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.<!-- Field: /Page --></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Cash payments for interest were $0 for the six months ended June 30, 2012 and $187 for the six months ended June 30, 2011.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Principal payments required during the 12 month periods ended June 30:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="background-color: #ccffcc;"><td style="width: 85%; vertical-align: bottom;">2013</td><td style="text-align: right; width: 1%; vertical-align: top;">&#160;</td><td style="width: 1%; vertical-align: top;">$</td><td style="text-align: right; width: 12%; vertical-align: top;">1,206,082</td><td style="width: 1%; vertical-align: top;">&#160;</td></tr><tr style="background-color: white;"><td style="vertical-align: bottom;">2014</td><td style="text-align: right; vertical-align: top;">&#160;</td><td style="vertical-align: top;">$</td><td style="text-align: right; vertical-align: top;">0</td><td style="vertical-align: top;">&#160;</td></tr><tr style="background-color: #ccffcc;"><td style="vertical-align: bottom;">2015</td><td style="text-align: right; vertical-align: top;">&#160;</td><td style="vertical-align: top;">$</td><td style="text-align: right; vertical-align: top;">89,300</td><td style="vertical-align: top;">&#160;</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>NOTE&#160;9 &#8211; RENT OBLIGATION</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The Company leases its principal office under a non-cancelable lease that extends five years and expires October 2013. In addition to rent, the Company pays real estate taxes and repairs and maintenance on the leased property. Rent expense was $49,975 and $49,863 for 2011 and 2010, respectively.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The&#160;Company&#8217;s rent obligation for the years 2012 and 2013 is as follows:</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 87%;">2012</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">31,000</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2013</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">26,000</td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE&#160;7 &#8211; RENT OBLIGATION</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company leases its principal office under a non-cancelable lease that extends five years. In addition to rent, the Company pays real estate taxes and repairs and maintenance on the leased property. Rent expense was $26,084 in the six months ended June 30, 2012 and $24,293 in the six months ended June 30, 2011. The Company moved its headquarters on May 1, 2012. The rental management remains the same and the Company is operating on a month to month lease with no escalations.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>NOTE 10 &#8211; LIABILITY FOR EQUITY-LINKED FINANCIAL INSTRUMENTS</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The Company adopted ASC 815- <i>Derivatives and Hedging</i> (&#8220;ASC 815&#8221;) on January 1, 2009. ASC 815 mandates a two-step process for evaluating whether an equity-linked financial instrument or embedded feature is indexed to the entity's own stock. It was effective for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years, which was the Company's first quarter of 2009. Many of the warrants issued by the Company contain a strike price adjustment feature, which upon adoption of ASC 815, changed the classification (from equity to liability) and the related accounting for warrants with a $479,910 estimated fair value of as of January 1, 2009. An adjustment was made to remove $486,564 from paid-in capital (the cumulative values of the warrants on their grant dates), a positive adjustment of $6,654 was made to accumulated deficit, representing the gain on valuation from the grant date to January 1, 2009, and $479,910 was booked as a liability. The warrants issued in 2011 do not contain a strike price adjustment feature and, therefore, are not treated as a liability.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The January 1, 2009 valuation was computed using the Black-Scholes valuation model based upon a 2.5-year expected term, an expected volatility of 63%, an exercise price of $.46 per share, a stock price of $.35, a zero dividend rate and a 1.37% risk free interest rate. Subsequent to January 1, 2009 these warrants were re-valued at the end of each quarter and a gain or loss was recorded based upon their increase or decrease in value during the quarter. Likewise, new warrants that were issued during 2009 and 2010&#160;were valued, using the Black-Scholes valuation model on their date of grant and an entry was made to reduce paid-in capital and increase the liability for equity-linked financial instruments. These warrants were also re-valued at the end of each quarter based upon their expected life, the stock price, the exercise price, assumed dividend rate, expected volatility and risk free interest rate. A significant reduction in the liability was realized in 2010 primarily due to a reduction from $.50 to $.22 per share in the underlying stock price. The Company realized a slight increase in the liability for existing warrants during the first quarter of 2011 primarily due to a reduction in the spread between the exercise price and the market price of the underlying shares, additionally, there was an increase in the liability due to the extension of some existing warrants.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The inputs to the Black-Scholes model during 2009, 2010 and 2011 were as follows:</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="width: 84%;">Stock price</td> <td style="width: 1%;">&#160;</td> <td style="text-align: center; width: 15%;" nowrap="nowrap">$ .08 to $.50</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Exercise price</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">$ .01 to $.65</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Expected life</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">2.0 to 6.5 years</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Expected volatility</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">54% to 68%</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Assumed dividend rate</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">- %</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Risk-free interest rate</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">.13% to 2.97%</td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The original valuations, annual gain (loss) and end of year valuations are shown below:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Initial&#160;Value</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Annual<br />Gain&#160;(Loss)</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Value at<br />12/31/09</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2010<br />Gain (Loss)</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Value at<br />12/31/10</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2011<br />Gain (Loss)</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Value&#160;at<br />12/31/2011</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="width: 30%;"><font style="font-size: 8pt;">January 1, 2009 adoption</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">479,910</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">(390,368</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">)</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">870,278</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">868,772</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">1,506</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">(88,290</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">)</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">89,796</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;"><font style="font-size: 8pt;">Warrants issued in quarter ended 6/30/2009</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">169,854</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">20,847</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">149,007</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">147,403</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">1,604</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(4,689</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">6,293</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;"><font style="font-size: 8pt;">Warrants issued in quarter ended 9/30/2009</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">39,743</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(738</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">40,481</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">40,419</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td>&#160;</td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">62</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(1,562</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">1,624</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">Warrants issued in quarter ended 12/31/2009</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">12,698</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">617</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">12,081</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">12,053</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">28</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">(724</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">752</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: right;"><font style="font-size: 8pt;">Subtotal</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">702,205</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">1,071,847</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;"><font style="font-size: 8pt;">Warrants issued in quarter ended 3/31/2010</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">25,553</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">25,014</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">539</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(5,571</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">6,109</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;"><font style="font-size: 8pt;">Warrants issued in quarter ended 6/30/2010</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">31,332</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">30,740</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">592</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(6,122</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">6,714</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">Warrants issued in quarter ended 9/30/2010</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">31,506</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">20,811</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">10,615</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">(44,160</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">54,775</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: right; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">Total</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">790,596</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">(369,642</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">1,071,847</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">1,145,292</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">14,946</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">(151,118</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">166,072</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE&#160;8 &#8211; LIABILITY FOR EQUITY-LINKED FINANCIAL INSTRUMENTS</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company adopted ASC 815- Derivatives and Hedging (&#8220;ASC 815&#8221;) on January 1, 2009. ASC 815 mandates a two-step process for evaluating whether an equity-linked financial instrument or embedded feature is indexed to the entity's own stock. It was effective for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years, which was the Company's first quarter of 2009. Many of the warrants issued by the Company contain a strike price adjustment feature, which upon adoption of ASC 815, changed the classification (from equity to liability) and the related accounting for warrants with a $479,910 estimated fair value of as of January 1, 2009. An adjustment was made to remove $486,564 from paid-in capital (the cumulative values of the warrants on their grant dates), a positive adjustment of $6,654 was made to accumulated deficit, representing the gain on valuation from the grant date to January 1, 2009, and $479,910 was booked as a liability. The warrants issued in 2011 do not contain a strike price adjustment feature and, therefore, are not treated as a liability.</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The January 1, 2009 valuation was computed using the Black-Scholes valuation model based upon a 2.5-year expected term, an expected volatility of 63%, an exercise price of $.46 per share, a stock price of $.35, a zero dividend rate and a 1.37% risk free interest rate. Subsequent to January 1, 2009 these warrants were re-valued at the end of each quarter and a gain or loss was recorded based upon their increase or decrease in value during the quarter. Likewise, new warrants that were issued during 2009 and 2010&#160;were valued, using the Black-Scholes valuation model on their date of grant and an entry was made to reduce paid-in capital and increase the liability for equity-linked financial instruments. These warrants were also re-valued at the end of each quarter based upon their expected life, the stock price, the exercise price, assumed dividend rate, expected volatility and risk free interest rate. A significant reduction in the liability was realized in 2010 primarily due to a reduction from $.50 to $.22 per share in the underlying stock price. The Company realized a slight increase in the liability for existing warrants during the first quarter of 2012 primarily due to a reduction in the spread between the exercise price and the market price of the underlying shares, additionally; there was an increase in the liability due to the extension of some existing warrants. The Company realized a large decrease in the liability for existing warrants in the second quarter of 2012 as many of the existing warrants expired and the spread of the remaining warrants between exercise and market price was more consistent.</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The inputs to the Black-Scholes model during 2009, 2010, 2011 and 2012 were as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="background-color: #ccffcc; vertical-align: top;"><td style="width: 80%; padding-right: 0.8pt;">Stock price</td><td style="width: 2%; padding-right: 0.8pt;">&#160;</td><td style="text-align: center; width: 18%; padding-right: 0.8pt;">$ .08 to $.50</td></tr><tr style="background-color: white; vertical-align: top;"><td style="padding-right: 0.8pt;">Exercise price</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">$ .01 to $.65</td></tr><tr style="background-color: #ccffcc; vertical-align: top;"><td style="padding-right: 0.8pt;">Expected life</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">2.0 to 6.5 years</td></tr><tr style="background-color: white; vertical-align: top;"><td style="padding-right: 0.8pt;">Expected volatility</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">54% to 68%</td></tr><tr style="background-color: #ccffcc; vertical-align: top;"><td style="padding-right: 0.8pt;">Assumed dividend rate</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">- %</td></tr><tr style="background-color: white; vertical-align: top;"><td style="padding-right: 0.8pt;">Risk-free interest rate</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">.13% to 2.97%</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;<br />The original valuations, annual gain/(loss) and end of year valuations are shown below:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Initial&#160;Value</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Annual Gain&#160;(Loss)</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Value at 12/31/09</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">2010 Gain (Loss)</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Value at 12/31/10</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">2011 Gain (Loss)</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Value at 12/31/2011</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">2012 Gain (Loss)</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Value at 6/30/2012</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; width: 19%; font-size: 10pt;"><font style="font-size: 7pt;">January 1, 2009 adoption</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">479,910</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">(390,368</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">870,278</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">868,772</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">1,506</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">(88,290</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">89,796</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">43,266</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">46,530</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 6/30/2009</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">169,854</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">20,847</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">149,007</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">147,403</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,604</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(4,689</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">6,293</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">6,293</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">-</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 9/30/2009</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">39,743</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(738</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">40,481</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">40,419</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">62</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(1,562</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,624</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,608</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">16</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 12/31/2009</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">12,698</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">617</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">12,081</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">12,053</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">28</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(724</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">752</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">556</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">196</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; padding-left: 0.24in; font-size: 10pt;"><font style="font-size: 7pt;">Subtotal</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">702,205</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,071,847</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 3/31/2010</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">25,553</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">25,014</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">539</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(5,571</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">6,109</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">3,209</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">2,900</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 6/30/2010</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">31,332</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">30,740</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">592</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(6,122</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">6,714</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">3,247</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">3,467</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 9/30/2010</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">31,506</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">20,891</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">10,615</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(44,160</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">54,775</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,418</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">53,357</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; padding-left: 0.24in; font-size: 10pt;"><font style="font-size: 7pt;">Total</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">790,596</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(369,642</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,071,847</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,145,292</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">14,946</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(151,118</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">166,063</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">59,597</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">106,466</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><font size="2" style="font-family:times new roman,times"><b>NOTE 11 - RELATED PARTY TRANSACTIONS</b></font></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><font size="2" style="font-family:times new roman,times">The Company entered into agreements, in 2008, with our Chairman of the Board, Lawrence Gadbaw, and in 2009 with board member, Peter Morawetz, to pay Mr. Gadbaw $25,000 and Mr. Morawetz $30,000 upon the Company raising $3 million in new equity. Mr. Gadbaw will also be paid the balance, if any, due under his separation agreement from 2008. This amount was $46,000 upon signing the agreement in 2008, is payable at $2,000 per month, and $12,000 remains in accounts payable as of&#160;December 31, 2011. Mr. Morawetz will also receive a stock option for 75,000 shares at $.35 per share and Mr. Gadbaw will receive a stock option for 160,000 shares at $.35 per share upon the Company raising $3 million.</font></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 9&#8211; RELATED PARTY</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company entered into agreements, in 2008, with our Chairman of the Board, Lawrence Gadbaw, and in 2009 with a board member, Peter Morawetz, to pay Mr. Gadbaw $25,000 and Mr. Morawetz $30,000 upon the Company raising $3 million in new equity. Mr. Gadbaw received 277,778 shares at $.09 per share in June 2012 as compensation in lieu of the $25,000 cash for raising $3 million in new equity. Mr. Gadbaw was paid the balance due under his separation agreement from 2008. This amount was $46,000 upon signing the agreement in 2008 payable at $2,000 per month; the payments to Mr. Gadbaw are complete. Mr. Gadbaw is due $6,000 in accounts payable as of&#160;June 30, 2012 pertaining to his monthly fee as Chairman of the Board of Directors. Mr. Gadbaw also received a warrant for 30,000 shares at $.15 per share in June 30, 2012<b></b>as compensation for service as Chairman.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="background-color: white; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On March 28, 2012, the Company, entered into a Convertible Note Purchase Agreement, dated as of March 28, 2012 (the &#8220;SOK Purchase Agreement&#8221;) with SOK Partners, LLC (&#8220;SOK Partners&#8221;), an investment partnership. Josh Kornberg, who is a member of the Company&#8217;s Board of Directors, and Dr. Samuel Herschkowitz are affiliates of the manager of SOK Partners and Ricardo Koenigsberger, a director, is a holder of membership units of SOK Partners. Pursuant to the SOK Purchase Agreement, the Company issued a 20.0% convertible note due August 2012 in the principal amount of up to $600,000. Principal and accrued interest on the note is due and payable on August 28, 2012. The Company&#8217;s obligations under the note are secured by the grant of a security interest in substantially all tangible and intangible assets of the Company. The SOK Purchase Agreement and the note include customary events of default that include, among other things, non-payment defaults, covenant defaults, inaccuracy of representations and warranties, cross-defaults to other indebtedness and bankruptcy and insolvency defaults. The occurrence of an event of default could result in the acceleration of the Company&#8217;s obligations under the note, and interest rate of twenty-four (24%) percent per annum accrues if the note is not paid when due. The balances of the Samuel Herschkowitz and SOK Partners notes are $240,000 and $357,282, respectively, as of the month ended June 30, 2012. See &#8220;Part II Other Information; Item 5 Other Information&#8221;.<!-- Field: /Page --></p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">On March 28, 2012, the Company received an advance of $84,657 under the note, including a cash advance of $60,000 net of a prepayment of interest on the first $300,000 in advances under the note. The holder of the note is entitled to convert the note into shares of common stock of the Company at an initial conversion price per share of $0.065 per share, subject to adjustment in the event of (1) certain issuances of common stock or convertible securities at a price lower than the conversion price of the note, and (2) recapitalizations, stock splits, reorganizations and similar events. In addition, the Company is required to issue two installments of an equity bonus to SOK Partners in the form of common stock valued at the rate of $0.065 per share. In March 2012, the Company issued the first equity bonus to SOK Partners, consisting of 4,615,385 shares of common stock, with a second installment due within five business days after SOK Partners has made aggregate advances under the note of at least $300,000. In May 2012 the Company issued the second installment consisting of 4,615,385 shares of common stock subsequent to SOK Partners surpassing the aggregate advances of $300,000. Until the maturity date of the note, if the Company obtains financing from any other source without the consent of SOK Partners, then the Company is required to issue additional bonus equity in an amount equal to $600,000 less the aggregate advances on the note made prior to the breach.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">As long as any amount payable under the note remains outstanding, SOK Partners or its designee is entitled to appoint a new member to the Company&#8217;s Board of Directors, who will be appointed upon request. Mr. Koenigsberger was appointed to the Board by SOK Partners on June 25, 2012.</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On March 28, 2012, the Company signed an Amended and Restated Note Purchase Agreement, dated as of December 20, 2011, with Dr. Samuel Herschkowitz (as amended, the &#8220;Herschkowitz Purchase Agreement&#8221;). Pursuant to the Herschkowitz Purchase Agreement, the Company issued a 20.0% convertible note due June 20, 2012 in the principal amount of $240,000 for previous advances under the note. The Company&#8217;s obligations under the note are secured by the grant of a security interest in substantially all tangible and intangible assets of the Company. The Company has previously issued to Dr. Herschkowitz an equity bonus consisting of 1,546,667 shares of common stock. An additional 7,500,000 shares were transferred to Dr. Herschkowitz effective in April 2012, upon the occurrence of an event of default on the note. On August 13, 2012 the Company entered into a settlement and forbearance agreement relating to the defaults under the note and other matters. Among other things, the Company issued 26.5 million shares of common stock to Dr. Herschkowitz and SOK Partners and adjusted the conversion price of the notes held by such parties, in exchange for forbearance from Dr. Herschkowitz asserting his rights as a secured creditor, an extension of the due dates of the notes and other consideration. See &#8220;Part II Other Information; Item 5 Other Information&#8221;.</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>&#160;</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">As long as any amount payable under the note remains outstanding, Dr. Herschkowitz or his designee is entitled to appoint a special advisor to the Company&#8217;s Board of Directors, who will be appointed as a member of the Board upon request. Pursuant to this authority, Josh Kornberg was appointed to the Board on March 9, 2012. Mr. Kornberg was appointed the Interim CEO, President and CFO on April 24, 2012. On July 22, 2012 Mr. Kornberg was approved by the Board of Directors as the Company&#8217;s CEO/President. These notes are included in the current portion of convertible debt on the balance sheet.&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Nature of Operations and Continuance of Operations</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">BioDrain Medical, Inc. (the "Company") was incorporated under the laws of the State of Minnesota in 2002. The Company is developing an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and has a stockholders&#8217; deficit. These factors raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Management hired an investment banker in 2010 to raise an additional $3 to $5 million in new equity. The banker was unable to raise the expected $500,000 by September 30, 2010 and the balance within three months, but the Company raised approximately $229,000 in equity and $605,000 in convertible debt in 2010 and $1,154,000 in equity and $533,000 in convertible debt in 2011 through alternative means. The Company's April 1, 2009 510(k) clearance from the FDA to authorize the Company to market and sell its FMS products is being received very positively. The Company has a private investor that has committed $300,000 to $600,000 in 2012 with potential additional investment subsequent to June 2012.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Nature of Operations and Continuance of Operations</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">BioDrain Medical, Inc. (the "Company") was incorporated under the laws of the State of Minnesota in 2002. The Company has developed an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care. The Company also makes ongoing sales of our proprietary cleaning fluid to users of our systems. In April 2009, the Company received 510(k) clearance from the FDA to authorize the Company to market and sell its STREAMWAY&#174; FMS products.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and has a stockholders&#8217; deficit. These factors raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Since inception, the Company raised approximately $4,107,000 in equity and $2,178,000 in debt financing, including $1,153,000 in equity and $525,000 in convertible debt in 2011. The Company has raised approximately $184,120 in equity and $373,000 in convertible debt in the first and second quarters of 2012. The Company is currently engaged in a private placement of units of common stock and warrants. The Company is also engaged in a corporate restructuring, including actively seeking to convert indebtedness into equity. See &#8220;Part II Other Information; Item 5 Other Information&#8221;.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Recent Accounting Developments</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">In the first quarter of 2011 we adopted new guidance on separating consideration in multiple-deliverable arrangements. The guidance addresses how to determine whether an arrangement involving multiple deliverables contains more than one unit of accounting and how the consideration should be allocated among the separate units of accounting. The adoption of this guidance did not have a material impact on our financial statements.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Recent Accounting Developments</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Valuation of Intangible Assets</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">We review identifiable intangible assets for impairment in accordance with ASC 360- <i>Property, Plant and Equipment</i> ("ASC 360"), whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management's best estimate of the related risks and return at the time the impairment assessment is made.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="text-indent: 0px; margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Our accounting estimates and assumptions bear various risks of change, including the length of the current economic downturn facing the United States, the expansion of the slowdown in consumer spending in the U.S. medical markets despite the early expressed opinions of financial experts that the medical market would not be as affected as other markets and failure to gain acceptance in the medical market.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Valuation of Intangible Assets</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">We review identifiable intangible assets for impairment in accordance with ASC 360- Property, Plant and Equipment ("ASC 360"), whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management''s best estimate of the related risks and return at the time the impairment assessment is made.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our accounting estimates and assumptions bear various risks of change, including the length of the current economic downturn facing the United States, the expansion of the slowdown in consumer spending in the U.S. medical markets despite the early expressed opinions of financial experts that the medical market would not be as affected as other markets and failure to gain acceptance in the medical market.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Accounting Policies and Estimates</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Accounting Policies and Estimates</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Presentation of Taxes Collected from Customers</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Sales taxes are imposed on the Company&#8217;s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company&#8217;s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Presentation of Taxes Collected from Customers</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Sales taxes are imposed on the Company&#8217;s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company&#8217;s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Shipping and Handling</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Shipping and Handling</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Advertising</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Advertising costs are expensed as incurred. There were no advertising expenses for 2011 or 2010.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Advertising</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Advertising costs are expensed as incurred. There were no advertising expenses in the three and six months ended June 30, 2012 and $0 and $1,100 in the three and six months ended June 30, 2011, respectively.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Research and Development</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Research and development costs are charged to operations as incurred.&#160;&#160;Research and development costs were $0 and approximately $10,000 for 2011 and 2010, respectively.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Research and Development</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Research and development costs are charged to operations as incurred. There were no research and development expenses in the three and six months ended June 30, 2012 and June 30, 2011.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Revenue Recognition</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The Company recognizes revenue in accordance with the SEC&#8217;s Staff Accounting Bulletin No. 101, <i>Revenue Recognition in Financial Statements</i>, as amended by Staff Accounting Bulletin No. 104 (together, SAB 101), and ASC 605- <i>Revenue Recognition.</i></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company&#8217;s standard terms specify that shipment is FOB BioDrain and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the FMS units as well as shipments of cleaning solution kits. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company&#8217;s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer&#8217;s right of return is limited only to the Company&#8217;s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the FMS unit or significant quantities of cleaning solution kits may be returned. Additionally, since the Company buys both the FMS units and cleaning solution kits from &#8220;turnkey&#8221; suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Revenue Recognition</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company recognizes revenue in accordance with the SEC&#8217;s Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements, as amended by Staff Accounting Bulletin No. 104 (together, SAB 101), and ASC 605- Revenue Recognition.</p><p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company&#8217;s standard terms specify that shipment is FOB BioDrain and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY FMS units as well as shipments of cleaning solution kits. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company&#8217;s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer&#8217;s right of return is limited only to the Company&#8217;s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY FMS unit or significant quantities of cleaning solution kits may be returned. Additionally, since the Company buys both the STREAMWAY FMS units and cleaning solution kits from &#8220;turnkey&#8221; suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Receivables</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company has determined there will be no losses on balances outstanding at December 31, 2011.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Receivables</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Receivables are reported at the amount the Company expects to collect on balances outstanding at fiscal year end. The Company has determined there will be no losses on balances outstanding at the six months ended June 30, 2012.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Inventories</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&#160;follows:</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="color: black;" nowrap="nowrap">&#160;</td> <td style="text-align: center; color: black;" colspan="2" nowrap="nowrap"><font style="color: black;"><b>December&#160;31</b>,</font></td> <td style="color: black;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 74%;">Finished goods</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">94,331</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">-</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">Raw materials</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">3,274</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">-</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 2.5pt;">Total</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">97,605</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">-</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Inventories</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&#160;follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">June&#160;30,</td><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">December&#160;31,</td><td style="font-size: 10pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; width: 72%; font-size: 10pt;">Finished goods</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">67,498</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">94,331</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">Raw materials</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">29,294</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">3,274</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-size: 10pt;">Total</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">96,792</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">97,605</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Property and Equipment</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="width: 85%;">&#160;</td> <td style="width: 2%;">&#160;</td> <td style="text-align: center; width: 12%;">Years</td> <td style="width: 1%;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>Computers and office equipment</td> <td>&#160;</td> <td style="text-align: center;">3</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>Furniture and fixtures</td> <td>&#160;</td> <td style="text-align: center;">5</td> <td>&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Property and Equipment</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 86%;">&#160;</td><td style="width: 2%;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; width: 12%;">Years</td></tr><tr style="background-color: #ccffcc; vertical-align: top;"><td>Computers and office equipment</td><td>&#160;</td><td style="text-align: center;">3</td></tr><tr style="background-color: white; vertical-align: top;"><td>Furniture and fixtures</td><td>&#160;</td><td style="text-align: center;">5</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Intangible Assets</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Intangible assets consist of trademarks and patent costs. These assets are not subject to amortization until the property patented is in production. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified. No impairment losses have been identified by management.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Intangible Assets</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Intangible assets consist of patent costs. These assets are not subject to amortization until the property patented is in production. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified. No impairment losses have been identified by management.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Income Taxes</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The Company accounts for income taxes in accordance with ASC 740- <i>Income Taxes (&#8220;ASC 740&#8221;)</i>. Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Tax years subsequent to 2007 remain open to examination by federal and state tax authorities.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Income Taxes</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company accounts for income taxes in accordance with ASC 740- Income Taxes (&#8220;ASC 740&#8221;). Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Tax years subsequent to 2007 remain open to examination by federal and state tax authorities.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Patents and Intellectual Property</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">In June 2008, the Company completed and executed an agreement to secure exclusive ownership of the Company&#8217;s primary patent from an inventor, Marshall Ryan. Mr. Ryan received a combination of cash and warrants, and he will receive a 4% royalty on STREAMWAY FMS (the Product) sales for the life of the patent. At the signing of the agreement, Mr. Ryan received $75,000 in exchange for the exclusive assignment of the patent. In addition, on June 30, 2009, Mr. Ryan, through his Mid-State Stainless, Inc. entity, was entitled to receive $100,000 as payment (currently recorded as an account payable with the Company) for past research and development activities. Should Mr. Ryan be utilized in the future for additional product development activities, he will be compensated at a rate of $95.00 per hour.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Mr. Ryan also received a warrant, with immediate vesting, to purchase 150,000 shares of the Company's common stock at a price of $.35 per share. The warrant has a five-year term ending on June 30, 2013 and was assigned a value of $28,060 using a Black-Scholes formula. This amount was expensed as consulting expense in 2008 using a five-year expected life, a 3.73% risk-free interest rate, an expected 59% volatility and a zero dividend rate. Should there be a change in control of the Company (defined as greater than 50% of the Company&#8217;s outstanding stock or substantially all of its assets being transferred to one independent person or entity), Mr. Ryan will be owed a total of $2 million to be paid out over the life of the patent if the change in control occurs within 12 months of the first sale of the product; or $1 million to be paid out over the life of the patent if the change in control occurs between 12 and 24 months of the first sale of the product; or $500,000 to be paid out over the life of the patent if the change in control occurs between 24 and 36 months of the first sale of the product. There will be no additional payment if a change in control occurs more than 36 months after the first sale of the product.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Patents and Intellectual Property</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">In June 2008, the Company completed and executed an agreement to secure exclusive ownership of the Company&#8217;s primary patent from an inventor, Marshall Ryan. Mr. Ryan received a combination of cash and warrants, and he will receive a 4% royalty on STREAMWAY FMS (the Product) sales for the life of the patent. At the signing of the agreement, Mr. Ryan received $75,000 in exchange for the exclusive assignment of the patent. In addition, on June 30, 2009, Mr. Ryan, through his Mid-State Stainless, Inc. entity, was entitled to receive $100,000 as payment (currently recorded as an account payable with the Company) for past research and development activities. Should Mr. Ryan be utilized in the future for additional product development activities, he will be compensated at a rate of $95.00 per hour.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Mr. Ryan also received a warrant, with immediate vesting, to purchase 150,000 shares of the Company''s common stock at a price of $.35 per share. The warrant has a five-year term ending on June 30, 2013 and was assigned a value of $28,060 using a Black-Scholes formula. This amount was expensed as consulting expense in 2008 using a five-year expected life, a 3.73% risk-free interest rate, an expected 59% volatility and a zero dividend rate. Should there be a change in control of the Company (defined as greater than 50% of the Company&#8217;s outstanding stock or substantially all of its assets being transferred to one independent person or entity), Mr. Ryan will be owed a total of $2 million to be paid out over the life of the patent if the change in control occurs within 12 months of the first sale of the product; or $1 million to be paid out over the life of the patent if the change in control occurs between 12 and 24 months of the first sale of the product; or $500,000 to be paid out over the life of the patent if the change in control occurs between 24 and 36 months of the first sale of the product. There will be no additional payment if a change in control occurs more than 36 months after the first sale of the product.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Subsequent Events</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company has evaluated subsequent events through the date of this filing.&#160; </font>On March 28, 2012, BioDrain Medical, Inc. (the &#8220;Company&#8221;), entered into a Convertible Note Purchase Agreement, dated as of March 28, 2012 (the &#8220;SOK Purchase Agreement&#8221;) between the Company and SOK Partners, LLC (&#8220;SOK Partners&#8221;), an investment partnership. Josh Kornberg, who is a member of the Company&#8217;s Board of Directors, and Dr. Samuel Herschkowitz are affiliates of the manager of SOK Partners. Pursuant to the SOK Purchase Agreement, the Company issued a 20.0% convertible note due August 2012 in the principal amount of up to $600,000. Principal and accrued interest on the note are due and payable on August 28, 2012. The Company&#8217;s obligations under the note are secured by the grant of a security interest in substantially all tangible and intangible assets of the Company. The SOK Purchase Agreement and the note include customary events of default that include, among other things, non-payment defaults, covenant defaults, inaccuracy of representations and warranties, cross-defaults to other indebtedness and bankruptcy and insolvency defaults. The occurrence of an event of default could result in the acceleration of the Company&#8217;s obligations under the note, and interest rate of twenty-four (24%) percent per annum accrues if the note is not paid when due.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">On March 28, 2012, the Company received an advance of $84,657 under the note, including a cash advance of $60,000 net of a prepayment of interest on the first $300,000 in advances under the note. The holder of the note is entitled to convert the note into shares of common stock of the Company at an initial conversion price per share of $0.065 per share, subject to adjustment in the event of (1) certain issuances of common stock or convertible securities at a price lower than the conversion price of the note, and (2) recapitalizations, stock splits, reorganizations and similar events. In addition, the Company is required to issue two installments of an equity bonus to SOK Partners in the form of common stock valued at the rate of $0.065 per share. In April 2012, the Company issued the first equity bonus to SOK Partners, consisting of 4,615,385 shares of common stock, with a second installment due within five business days after SOK Partners has made aggregate advances under the note of at least $300,000. Until the maturity date of the note, if the Company obtains financing from any other source without the consent of SOK Partners, then the Company is required to issue additional bonus equity in an amount equal to $600,000 less the aggregate advances on the note made prior to the breach.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">As long as any amount payable under the note remains outstanding, SOK Partners or its designee is entitled to appoint a special advisor to the Company&#8217;s Board of Directors, who will be appointed as a member of the Board upon request.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The foregoing description does not purport to be complete and is qualified in its entirety by the terms and conditions of the SOK Purchase Agreement, including the form of note, which is filed as an exhibit to this Annual Report on Form 10-K.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">On March 28, 2012, the Company signed an Amended and Restated Note Purchase Agreement, dated as of December 20, 2011, with Dr. Samuel Herschkowitz (as amended, the &#8220;Herschkowitz Purchase Agreement&#8221;). Pursuant to the Herschkowitz Purchase Agreement, the Company issued a 20.0% convertible note due June 20, 2012 in the principal amount of $240,000 for previous advances under the note. The Company&#8217;s obligations under the note are secured by the grant of a security interest in substantially all tangible and intangible assets of the Company. The Company has previously issued to Dr. Herschkowitz an equity bonus consisting of 1,546,667 shares of common stock. An additional 7,500,000 shares are required to be transferred to Dr. Herschkowitz upon the occurrence of an event of default on the note.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">As long as any amount payable under the note remains outstanding, Dr. Herschkowitz or his designee is entitled to appoint a special advisor to the Company&#8217;s Board of Directors, who will be appointed as a member of the Board upon request. Pursuant to this authority, Josh Kornberg was appointed to the Board on March 9, 2012. <font style="color: black;">The Company does not believe there are other subsequent events that require disclosure. </font></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Subsequent to year end an institutional investor converted $92,000 of Convertible Debt to 1,647,048 shares of common stock</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Subsequent Events</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Board of Directors approved Joshua Kornberg as the Chief Executive Officer/President on July 22, 2012. The Board of Directors also approved David O. Johnson and Bob Myers as Chief Operating Officer and Chief Financial Officer, respectively, on July 1, 2012.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On August 13, 2012, the Company entered into an employment agreement with Joshua Kornberg, who has served as Chief Executive Officer since July 22, 2012 and who served as Interim Chief Executive Officer from April 24, 2012 to July 21, 2012.</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On August 13, 2012, the Company entered into employment agreements with David O. Johnson, who has served as Chief Operating Officer since July 1, 2012, and Bob Myers, who has who has served as Chief Financial Officer since July 1, 2012.<!-- Field: /Page --></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Adoption of 2012 Stock Incentive Plan.</i> On August 13, 2012, the Board of Directors of the Company adopted the 2012 Stock Incentive Plan (the &#8220;Plan&#8221;). The Plan became effective on that date. The Company intends to seek shareholder approval of the Plan in 2012 so that stock options may be granted under the Plan in the future that qualify as incentive stock options under the Code. The Plan is intended to replace the 2008 Equity Incentive Plan (the &#8220;2008 Plan&#8221;). Currently, options to purchase 4,263,042 shares of Common Stock are outstanding under the 2008 Plan. No further awards will be made under the 2008 Plan, although awards granted prior to August 11, 2012 continue to be governed by the 2008 Plan. See &#8220;Part II Other Information; Item 5 Other Information&#8221;.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="background-color: white; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Letter Agreement With Investors Regarding Forbearance and Dilution Protection.</i> On August 13, 2012, the Company entered into a letter agreement with Dr. Samuel Herschkowitz, his affiliate, Atlantic Partners Alliance (&#8220;APA&#8221;), and SOK Partners, LLC (&#8220;SOK&#8221;), an investment partnership. Dr. Herschkowitz and Joshua Kornberg, the Chief Executive Officer of the Company, are managers of APA and SOK Partners. Under the letter agreement, among other things, (i) Dr. Herschkowitz agreed to forbear from asserting his rights as a secured creditor to substantially all of the Company&#8217;s assets, resulting from the Company&#8217;s defaults; (ii) the Company agreed to issue shares of common stock to Dr. Herschkowitz and SOK and adjust the conversion price of their convertible notes to satisfy the Company&#8217;s obligations to protect them against dilution under a prior letter agreement; (iii) Dr. Herschkowitz and SOK agreed to extend the maturity of their notes; (iv) The Company agreed to pay certain compensation to Dr. Herschkowitz upon the achievement of financial milestones and (v) Dr. Herschkowitz clarified and waived certain of his rights, including the right to interest at a penalty rate upon default.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Private Placement of Common Stock and Warrants.</i> The Company continues to make sales of units of common stock at a price of $0.07 per share and warrants to purchase an equal number of shares at an exercise price of $0.15 per share. See Part II, Item 2, &#8220;Unregistered Sales of Equity Securities and Use of Proceeds.&#8221; The Company has raised a total of $280,000 in this private placement, selling a total of 3,999,857 shares of common stock and issuing warrants for a total of 3,999,857 shares.</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>&#160;</i></b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><i>Other Restructuring.</i> The Company continues an ongoing restructuring process negotiating with a significant number of creditors other than Dr. Herschkowitz and SOK to convert their indebtedness into common stock. The Company has evaluated all other subsequent events through the date of this filing. The Company does not believe there are any other subsequent events that require disclosure.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>Interim Financial Statements</b></p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company has prepared the unaudited interim financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;) and the rules and regulations of the Securities and Exchange Commission (&#8220;SEC&#8221;) for interim financial statements. These interim financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly the Company&#8217;s financial position, the results of its operations and its cash flows for the interim periods. These interim financial statements should be read in conjunction with the annual financial statements and the notes thereto contained in the Form 10-K filed with the SEC on April 16, 2012, as amended. The nature of the Company&#8217;s business is such that the results of any interim period may not be indicative of the results to be expected for the entire year.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&#160;follows:</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="color: black;" nowrap="nowrap">&#160;</td> <td style="text-align: center; color: black;" colspan="2" nowrap="nowrap"><font style="color: black;"><b>December&#160;31</b>,</font></td> <td style="color: black;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 74%;">Finished goods</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">94,331</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">-</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">Raw materials</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">3,274</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">-</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 2.5pt;">Total</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">97,605</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">-</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&#160;follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">June&#160;30,</td><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">December&#160;31,</td><td style="font-size: 10pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; width: 72%; font-size: 10pt;">Finished goods</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">67,498</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">94,331</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">Raw materials</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">29,294</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">3,274</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; font-size: 10pt;">Total</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">96,792</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">97,605</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Estimated useful asset life by classification is as follows:&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="width: 85%;">&#160;</td> <td style="width: 2%;">&#160;</td> <td style="text-align: center; width: 12%;">Years</td> <td style="width: 1%;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>Computers and office equipment</td> <td>&#160;</td> <td style="text-align: center;">3</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>Furniture and fixtures</td> <td>&#160;</td> <td style="text-align: center;">5</td> <td>&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Estimated useful asset life by classification is as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 86%;">&#160;</td><td style="width: 2%;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; width: 12%;">Years</td></tr><tr style="background-color: #ccffcc; vertical-align: top;"><td>Computers and office equipment</td><td>&#160;</td><td style="text-align: center;">3</td></tr><tr style="background-color: white; vertical-align: top;"><td>Furniture and fixtures</td><td>&#160;</td><td style="text-align: center;">5</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The following summarizes transactions for stock options and warrants for the periods indicated:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="6" nowrap="nowrap">Stock&#160;Options&#160;(1)</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="6" nowrap="nowrap">Warrants&#160;(1)</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Number&#160;of<br />Shares</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Average<br />Exercise<br />Price</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Number&#160;of<br />Shares</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Average<br />Exercise<br />Price</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="width: 48%;">Outstanding at December 31, 2005</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="text-align: right; width: 10%;">17,956</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">1.67</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="text-align: right; width: 10%;">20,950</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">2.62</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Issued</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">23,942</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">1.67</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">71,826</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">0.85</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Outstanding at December 31, 2006</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">41,898</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.67</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">92,776</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.25</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Issued</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">5,984</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">1.67</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">28,502</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">0.35</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Outstanding at December 31, 2007</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">47,882</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.67</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">121,278</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.04</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Issued</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,243,292</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.20</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,075,204</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.45</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Expired</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">(11,971</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">3.76</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Outstanding at December 31, 2008</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,291,174</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.26</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,184,511</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.45</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Issued</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">205,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">0.37</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">2,188,302</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">0.65</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Outstanding at December 31, 2009</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,496,174</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.27</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">7,372,813</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.49</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Issued</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,210,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.17</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3,435,662</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.34</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Expired</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(207,956</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.43</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(8,979</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.67</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Exercised</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">(128,571</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">0.46</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Outstanding at December 31, 2010</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3,498,218</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.19</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">10,670,925</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.44</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Issued</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,483,334</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.01</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">18,222,243</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.14</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Expired</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(83,941</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.73</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">(2,010,917</td> <td style="text-align: left;">)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.48</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Exercised</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">(100,000</td> <td style="text-align: left; padding-bottom: 1pt;">)</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">0.01</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 2.5pt;">Outstanding at December 31, 2011</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">5,797,611</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">0.11</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">26,882,251</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">0.23</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.5in;">&#160;</td> <td style="width: 0.25in;">(1)</td> <td>Adjusted for the reverse stock splits in total at June 6, 2008 and October 20, 2008.</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following summarizes transactions for stock options and warrants for the periods indicated:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; font-weight: bold;" colspan="6">Stock&#160;Options&#160;(1)</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; font-weight: bold;" colspan="6">Warrants&#160;(1)</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Number&#160;of</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Shares</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Average</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Exercise</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Price</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Number&#160;of</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Shares</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Average</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Exercise</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Price</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; width: 42%; padding-right: 0px;">Outstanding at December 31, 2005</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">17,956</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 2%; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">20,950</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 2%; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">2.62</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">23,942</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">71,826</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.85</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2006</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">41,898</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">92,776</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.25</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">5,984</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">28,502</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.35</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2007</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">47,882</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">121,278</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.04</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,243,292</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.20</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">5,075,204</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.45</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">(11,971</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">3.76</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2008</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,291,174</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.26</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">5,184,511</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.45</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">205,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.37</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">2,188,302</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.65</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2009</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,496,174</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.27</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">7,372,813</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.49</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,210,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.17</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3,435,662</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.34</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(207,956</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.43</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(8,979</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Exercised</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">(128,571</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">0.46</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2010</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3,498,218</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.19</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">10,670,925</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.44</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,483,334</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.01</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">18,222,243</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.14</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(83,941</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.73</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(2,010,917</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.48</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Exercised</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(100,000</td><td style="padding-bottom: 0px; padding-right: 0px;">)</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.01</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at December 31, 2011</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">5,797,611</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.11</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">26,882,251</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.23</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 87,500</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.20</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; (382,716</td><td style="padding-bottom: 0px; padding-right: 0px;">)&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.01</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;"></td><td style="padding-bottom: 0px; padding-right: 0px;"></td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">(648,597</td><td style="padding-bottom: 0px; padding-right: 0px;">)&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.35</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">Exercised</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="vertical-align: top;"><td style="padding-bottom: 0px; padding-right: 0px;">Outstanding at March 31, 2012</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;5,414,895</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.12</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">26,321,154</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.21</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc;"><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr><tr><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">Issued</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;2,601,285</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.15</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr><tr style="background-color: #ccffcc;"><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">Expired</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160; &#160;&#160;&#160;&#160;(345,679</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">)&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.01</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; (1,170,000</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">)</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.62</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr><tr><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">Exercised</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; (412,963</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">)&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.01</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: center; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr><tr style="background-color: #ccffcc;"><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">Outstanding at June 30, 2012</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2pt double; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160; 4,656,253</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2.5pt double; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;0.13</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2pt double; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: center; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;27,752,439</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;</td><td style="border-bottom: black 2.5pt double; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-right: 0px; vertical-align: top;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 0.19</td><td style="padding-bottom: 0px; padding-right: 0px; vertical-align: bottom;">&#160;</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: top;"><td style="width: 4%; padding-right: 0.8pt;">(1)</td><td style="width: 93%; padding-right: 0.8pt;">Adjusted for the reverse stock splits in total at June 6, 2008 and October 20, 2008.</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The following summarizes the status of options and warrants outstanding at December 31, 2011:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"></p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="4" nowrap="nowrap">Range&#160;of&#160;Exercise&#160;Prices</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Shares</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">Weighted<br />Average<br />Remaining<br />Life</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;" colspan="2">Options:</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 16%;">0.01</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 445%;">&#160;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="text-align: right; width: 16%;">2,926,626</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="text-align: right; width: 16%;">8.97</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.15</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,060,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">8.60</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.35</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">775,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.55</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.50</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">30,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.87</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">$</td> <td style="text-align: right; padding-bottom: 1pt;">1.67</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">5,985</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="text-align: right; padding-bottom: 1pt;">0.87</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;" colspan="2">Total</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">5,797,611</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;" colspan="2">Warrants:</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.01</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">200,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3.94</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.02</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">71,826</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.45</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.075</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4,657,745</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.52</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.10</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,328,572</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.93</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.12</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">500,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.33</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.13</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">631,429</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1.78</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.15</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,333,334</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.16</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.16</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">500,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.27</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.17</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,882,353</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.27</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.18</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">200,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.11</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.20</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,445,239</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.05</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.25</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,375,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2.74</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.35</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">998,597</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.49</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">$</td> <td style="text-align: right;">0.46</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">4,028,606</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">0.95</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">$</td> <td style="text-align: right; padding-bottom: 1pt;">0.65</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">1,729,550</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="text-align: right; padding-bottom: 1pt;">0.66</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;" colspan="2">Total</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">26,882,251</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: right; padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following summarizes the status of options and warrants outstanding at June 30, 2012:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; font-weight: bold;" colspan="3">Range&#160;of&#160;Exercise&#160;Prices</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="text-align: center; padding-bottom: 0px; padding-right: 0px; font-weight: bold;" colspan="2">Shares</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2"><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Weighted</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Average</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Remaining</b></p><p style="text-align: center; margin: 0pt 1.8pt 0pt 0px; font: 10pt times new roman, times, serif;"><b>Life</b></p></td><td style="padding-bottom: 0px; padding-right: 0px; font-weight: bold;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">Options:</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; width: 5%; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; width: 3%; padding-right: 0px;">0.01</td><td style="padding-bottom: 0px; width: 62%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">1,785,268</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; width: 3%; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; width: 11%; padding-right: 0px;">3.82</td><td style="padding-bottom: 0px; width: 1%; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.15</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,060,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.88</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.35</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">775,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.87</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.50</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">30,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.37</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.67</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">5,985</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.37</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">Total</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 2.25pt double; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 2.25pt double; text-align: right; padding-bottom: 0px; padding-right: 0px;">4,656,253</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">Warrants:</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.01</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">200,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3.44</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.02</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">71,826</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.95</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.075</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">8,657,746</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.84</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.10</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,328,572</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.39</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.12</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">500,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.84</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.13</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">631,429</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.89</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.15</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3,934,618</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3.40</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.16</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">500,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.77</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.17</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,882,353</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.77</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.18</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">200,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.61</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.20</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2,532,739</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1.58</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.25</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">1,375,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">2.24</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.35</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">350,000</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.61</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.46</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">3,828,606</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.60</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;">$</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.65</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: windowtext 1pt solid; text-align: right; padding-bottom: 0px; padding-right: 0px;">759,550</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">0.59</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-right: 0px;" colspan="2">Total</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 2pt double; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-right: 0px;">27,752,439</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-right: 0px;">&#160;</td><td style="padding-bottom: 0px; padding-right: 0px;">&#160;</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Stock options and warrants expire on various dates from July 2012 to July 2021.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The following table is the listing of stock options and warrants as of December 31, 2011 by year of grant:</p> <p style="text-align: center; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Stock Options:</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="border-bottom: black 1pt solid; text-align: left;">Year</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Shares</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Price</td> <td style="padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">2006</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; width: 74%;">2007</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="text-align: right; width: 10%;">5,985</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="text-align: right; width: 10%;">1.67</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">2008</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,243,292</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">.01-.35</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2009</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">105,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">.35-.50</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">2010</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,060,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">.15</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">2011</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">2,383,334</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">.01</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;Total</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">5,797,611</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">$</td> <td style="text-align: right; padding-bottom: 2.5pt;">.01-1.67</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: left;">Warrants:</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">Year</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Shares</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2">Price</td> <td style="padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 74%;">2006</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="text-align: right; width: 10%;">35,913</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">.02</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2007</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">28,502</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">.35</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">2008</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,971,629</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">.02-.46</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2009</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,188,302</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">.13-.65</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">2010</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">3,435,662</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">.01-.65</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">2011</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">18,222,243</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">.075-.25</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Total</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: right;">26,882,251</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="text-align: left; padding-bottom: 2.5pt;">$</td> <td style="text-align: right; padding-bottom: 2.5pt;">.01-1.67</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table is the listing of stock options and warrants as of June 30, 2012 by year of grant:</p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;"></p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">Stock Options:&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;">&#160;</td></tr><tr><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">Year&#160;</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">Shares</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">Price</td><td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 60%; font-size: 10pt;">2007</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: right; width: 15%; font-size: 10pt;">5,985</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 15%; font-size: 10pt;">1.67</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2008</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">1,243,292</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.01-.35</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2009</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">105,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.35-.50</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2010</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">2,060,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.15</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2011</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">1,241,976</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.01</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">2012</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;Total</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">4,656,253</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">.01-1.67</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td></tr></table><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;"></p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p><p style="text-align: left; margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;"></p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">Warrants:</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">Year</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">Shares&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">Price</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 60%; font-size: 10pt;">2006</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: right; width: 15%; font-size: 10pt;">35,913</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 15%; font-size: 10pt;">.02</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2007</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2008</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">2,771,629</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.02-.46</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2009</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">598,207</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.13-.65</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2010</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">3,435,662</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.01-.65</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">2011</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">18,222,243</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">.075-.25</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">2012</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,688,785</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">.15-.20</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">Total</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">27,752,439</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">.01-1.67</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The following table presents the shares used in the basic and diluted loss per common share computations:</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td nowrap="nowrap">&#160;</td> <td colspan="2" nowrap="nowrap">&#160;</td> <td nowrap="nowrap">&#160;</td> <td nowrap="nowrap">&#160;</td> <td colspan="2" nowrap="nowrap">&#160;</td> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">From</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="6" nowrap="nowrap">Year&#160;Ended</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">April&#160;23,&#160;2002</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="6" nowrap="nowrap">December&#160;31,</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">(Inception)&#160;To</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,&#160;2011</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Numerator:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; width: 61%;">Net loss available in basic and diluted calculation</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">(4,486,879</td> <td style="text-align: left; width: 1%;">)</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">(1,352,709</td> <td style="text-align: left; width: 1%;">)</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">(11,868,956</td> <td style="text-align: left; width: 1%;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Denominator:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Weighted average common shares outstanding-basic</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">24,282,433</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">12,771,683</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">5,805,714</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Effect of dilutive stock options and warrants (1)</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Weighted average common shares outstanding-diluted</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">24,282,433</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">12,771,683</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">5,805,714</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Loss per common share-basic and diluted</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">(0.18</td> <td style="text-align: left; padding-bottom: 2.5pt;">)</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">(0.11</td> <td style="text-align: left; padding-bottom: 2.5pt;">)</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">(2.04</td> <td style="text-align: left; padding-bottom: 2.5pt;">)</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table presents the shares used in the basic and diluted loss per common share computations:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="6">Three Months Ended June 30,</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="6">Six Months Ended June 30,</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">Period from April 23, 2002 (Inception) to June 30,</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2012</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2011</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2012</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2011</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;" colspan="2">2012</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt; font-weight: bold;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">Numerator:</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; width: 30%; font-size: 10pt;">Net loss available in basic and diluted calculation</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(2,135,775</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(388,106</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(2,849,142</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(864,819</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 10%; font-size: 10pt;">(14,718,098</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;">)</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0in; font-size: 10pt;">Denominator:</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;">Weighted average common shares outstanding-basic</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">54,656,895</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">22,659,526</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">44,619,113</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">19,630,580</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">7,920,827</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;">Effect of diluted stock options and warrants (1)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;">Weighted average common shares outstanding-diluted</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">54,656,895</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">22,659,526</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">44,619,113</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">19,630,580</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">7,920,827</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;">Loss per common share-basic and diluted</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(0.04</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(0.02</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(0.06</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(0.04</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">(1.86</td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;">)</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">(1) 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.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The components of deferred income taxes at December 31, 2011 and December 31, 2010 are as follows:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="color: black;" nowrap="nowrap">&#160;</td> <td style="text-align: center; color: black;" colspan="2" nowrap="nowrap"><font style="color: black;"><b>December&#160;31</b>,</font></td> <td style="color: black;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right;" colspan="2">&#160;</td> <td>&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Deferred Tax Asset:</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#160;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; width: 74%;">Net Operating Loss</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">2,626,000</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">1,579,000</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt;">Other</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">49,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">56,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Total Deferred Tax Asset</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">2,675,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,635,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">Less Valuation Allowance</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">2,675,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">1,635,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 2.5pt;">Net Deferred Income Taxes</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The components of deferred income taxes at June 30, 2012 and December 31, 2011 are as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">June&#160;30,</td><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: center; font-size: 10pt;" colspan="2">December&#160;31,</td><td style="font-size: 10pt;">&#160;</td></tr><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr><td style="font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">Deferred Tax Asset:</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; width: 72%; font-size: 10pt;">Net Operating Loss</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">3,290,000</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">$</td><td style="text-align: right; width: 10%; font-size: 10pt;">2,626,000</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 1pt; font-size: 10pt;">Other</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">57,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">49,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; font-size: 10pt;">Total Deferred Tax Asset</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">3,347,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">2,675,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">Less Valuation Allowance</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">3,347,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,675,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">Net Deferred Income Taxes</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">&#8212;</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">&#8212;</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Long-term debt is as follows:</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,<br />2011</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-weight: bold;" colspan="2" nowrap="nowrap">December&#160;31,<br />2010</td> <td style="font-weight: bold;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 74%;">Note payable to bank in monthly installments of $1,275/including variable interest at 2% above the prevailing prime rate (3.25% at December 31, 2010). The final payment under the note was made in September 2011. The note was personally guaranteed by former executives of the Company.</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">&#8212;</td> <td style="text-align: left; width: 1%;">&#160;</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">10,267</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Notes payable to two individuals, net of discounts of $1,341 and $9,390 with interest only payments at 12% to March 2012 when the remaining balance is payable. The notes are convertible into 285,715 shares of common stock in the Company at $.35 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">98,659</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">90,610</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on October 26, 2009 to the parents of one of the Company's directors, net of a discount of $0 and $12,360 discount, with interest at 8% to March 31, 2012 when the remaining balance is payable and convertible into shares of common stock at $.35 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">87,640</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Notes payable issued to two individuals in January 2010. The notes bear interest at 8%, mature March 31, 2012 and are convertible into shares of common stock at 50% of the weighted average closing bid price over any 10 consecutive days of trading.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on June 12, 2010 to the parents of one of the Company's directors, net of a discount of $14,931 and $67,629. The note bears interest at 12% to March 31, 2012 when the remaining balance is payable, and is convertible into shares of common stock at $.18 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">185,069</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">132,371</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on August 2, 2010 to an institutional investor. The note accrued interest at 8%, matured May 4, 2011 and&#160;was convertible into shares of common stock at 50% of the average of the three lowest closing prices in any 10 day trading period. $20,000 was converted in the three months ended March 31, 2011 and $30,000, plus accrued interest, was converted in the three months ended June 30, 2011.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">50,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on June 14, 2011 to an institutional investor.&#160; The note bears interest at 8%, matures June 14, 2012 and is convertible into shares of common stock at 55% of the average of the five lowest closing prices in any 10 day trading period.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">63,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on July 12, 2011 to an institutional investor.&#160; The note bears interest at 8%, matures April 16, 2012 and is convertible into shares of common stock at 60% of the average of the five lowest closing prices in any 10 day trading period.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">37,500</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on September 16, 2010 to an institutional investor.&#160; The note bears interest at 10%, matures March 15, 2012 and is convertible into shares of common stock at $.18 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on December 23, 2010 to the parents of one of the Company&#8217;s directors, net of a discount of $4,960 and $7,229.&#160; The note bears interest at 10%, matures December 23, 2012 and is convertible into shares of common stock at $.084 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">11,840</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">9,571</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on December 31, 2010 to a law firm that accepted this note in full payment of their past due legal fees.&#160; The note bears interest at 6%, matures December 31, 2014 and is convertible into shares of common stock at $.15 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">457,300</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">457,300</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on December 23, 2010 to a private investor. The note matured April 30, 2011, is paid,&#160;and accrued interest at 10%.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">-</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">6,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued on September 21, 2010 to the parents of one of the Company&#8217;s directors, net of a discount of $0 and $12,702.&#160; The note bears interest at 12%, matures&#160;March 30, 2012 and is convertible into shares of common stock at $.18 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">32,000</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">19,298</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Notes payable issued in January 2011 to three individuals, net of a debt discount of $23,954. The notes bear interest at 10%, have a 24-month term and are convertible into shares of common stock at $0.084 to $0.10 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">126,046</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Note payable issued January 1, 2011 to a law firm that accepted this note in full payment of their past due legal fees.&#160; The note bears interest at 6%, matures January 1, 2015 and is convertible into shares of common stock at $.15 per share.</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">89,300</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">&#8212;</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">On November 18, 2011 the Company issued a convertible note with an institutional investor at 8% interest convertible into common stock at 60% of the average of the five lowest closing prices in any ten day trading period. The note matures on August 21, 2012.</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">50,000</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">&#8212;</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td>Total</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,450,714</td> <td style="text-align: left;">&#160;</td> <td>&#160;</td> <td style="text-align: left;">&#160;</td> <td style="text-align: right;">1,063,056</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;">Less amount due within one year</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">820,561</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> <td style="padding-bottom: 1pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right;">66,267</td> <td style="text-align: left; padding-bottom: 1pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 2.5pt;">Long-Term Debt</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">630,153</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> <td style="padding-bottom: 2.5pt;">&#160;</td> <td style="border-bottom: black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: black 2.5pt double; text-align: right;">996,789</td> <td style="text-align: left; padding-bottom: 2.5pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Long-term debt is as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;&#160;&#160;&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="font-size: 10pt;">&#160;</td><td style="font: bold 10pt times new roman, times, serif;">&#160;</td><td style="text-align: center; font: bold 10pt times new roman, times, serif;" colspan="2">June&#160;30, <br />2012</td><td style="font: bold 10pt times new roman, times, serif;">&#160;</td><td style="font: bold 10pt times new roman, times, serif;">&#160;</td><td style="text-align: center; font: bold 10pt times new roman, times, serif;" colspan="2">December&#160;31, <br />2011</td><td style="font: bold 10pt times new roman, times, serif;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; width: 72%; font-size: 10pt;">Notes payable to two individuals, net of discounts of $0 and $1,341 with interest only payments at 12% to March 2012 when the remaining balance was payable. The notes are convertible into 285,715 shares of common stock in the Company at $.35 per share.</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: right; width: 10%; font-size: 10pt;">100,000</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="width: 2%; font-size: 10pt;">&#160;</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td><td style="text-align: right; width: 10%; font-size: 10pt;">98,659</td><td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on October 26, 2009 to the parents of one the Company&#8217;s former directors. The note bears interest at 8%, matured on March 31, 2012 and is convertible into shares of common stock at $.35 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Notes payable issued to two individuals in January, 2010. The notes bear interest at 8% and matured on March 31, 2012. &#160;The notes were converted into shares of common stock.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on June 12, 2010 to the parents of one of the Company's former directors, net of a discount of $0 and $14,931. The note bears interest at 12%, matured on March 31, 2012, and is convertible into common stock at $.18 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">200,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">185,069</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">Note payable issued on June 14, 2011 to an institutional investor.&#160; The note accrued interest at 8%, during the three months ended March 31, 2012. The note was converted into shares of common stock.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">63,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">Note payable issued on July 12, 2011 to an institutional investor.&#160; The note bears interest at 8%, matured on April 16, 2012. &#160;The note was converted into shares of common stock.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">37,500</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on September 16, 2010 to an institutional investor.&#160; The note bears interest at 10%, matured on March 15, 2012 and is convertible into common stock at $.18 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">100,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on December 23, 2010 to the parents of one of our former directors, net of a discount of $0 and $4,960.&#160; The note bears interest at 12%, matures December 23, 2012 and is convertible into common stock at $.084 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">16,800</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">11,840</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued December 31, 2010 to a law firm that accepted this note in full payment of their past due legal fees.&#160; The Note had interest at 6%. The note was converted into shares of common stock.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">457,300</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued on September 21, 2010 to the parents of one of our former directors, net of a discount of $0 and $0.&#160; The note bears interest at 12%, matures&#160;December 23, 2012 and is convertible into shares of common stock at $.18 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">32,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">32,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Notes payable issued in January 2011 to three individuals, net of a debt discount of $0 and $23,954. The notes bear interest at 10%, have a 24 month term and are convertible into common stock at $0.084 to $0.10 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">50,000</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">126,046</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Note payable issued January 1, 2011 to a law firm that accepted this note in full payment of their past due legal fees.&#160; The Note bears interest at 6%, matures December 31, 2014 and is convertible into common stock at $.15 per share.</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">89,300</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">89,300</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">On November 18, 2011 the Company issued a convertible note with an institutional investor at 8% interest. The note was converted into shares of common stock.</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">-</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">50,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">Note payable issued in 2006, and then extended to March 31, 2012, to an investor for $.35 per share of common stock, the note bears interest at 10.25%</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">10,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">10,000</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Total</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">$</td><td style="text-align: right; font-size: 10pt;">698,100</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">$</td><td style="text-align: right; font-size: 10pt;">1,460,714</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Less amount due within one year &#8211; (1)</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">608,800</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td><td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">830,561</td><td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 2.5pt; text-indent: -9pt; padding-left: 0.12in; font-size: 10pt;">Long-Term Debt</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">89,300</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td><td style="border-bottom: black 2.5pt double; text-align: left; font-size: 10pt;">$</td><td style="border-bottom: black 2.5pt double; text-align: right; font-size: 10pt;">630,153</td><td style="text-align: left; padding-bottom: 2.5pt; font-size: 10pt;">&#160;</td></tr><tr style="background-color: white;"><td style="text-indent: -9pt; padding-left: 9pt; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td><td style="text-align: right; font-size: 10pt;">&#160;</td><td style="text-align: left; font-size: 10pt;">&#160;</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">(1) The short-term notes have all matured except for the $16,800 that matures in December 2012. The Company is currently negotiating with the note holders.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Principal payments required during the years 2012 to 2015 are as follows:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 87%;">2012</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">1,084,300</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2013</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">100,000</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">2014</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">457,300</td> <td style="text-align: left;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2015</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">89,300</td> <td style="text-align: left;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">Principal payments required during the 12 month periods ended June 30:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="background-color: #ccffcc;"><td style="width: 85%; vertical-align: bottom;">2013</td><td style="text-align: right; width: 1%; vertical-align: top;">&#160;</td><td style="width: 1%; vertical-align: top;">$</td><td style="text-align: right; width: 12%; vertical-align: top;">1,206,082</td><td style="width: 1%; vertical-align: top;">&#160;</td></tr><tr style="background-color: white;"><td style="vertical-align: bottom;">2014</td><td style="text-align: right; vertical-align: top;">&#160;</td><td style="vertical-align: top;">$</td><td style="text-align: right; vertical-align: top;">0</td><td style="vertical-align: top;">&#160;</td></tr><tr style="background-color: #ccffcc;"><td style="vertical-align: bottom;">2015</td><td style="text-align: right; vertical-align: top;">&#160;</td><td style="vertical-align: top;">$</td><td style="text-align: right; vertical-align: top;">89,300</td><td style="vertical-align: top;">&#160;</td></tr></table><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The inputs to the Black-Scholes model during 2009, 2010 and 2011 were as follows:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"></p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="width: 84%;">Stock price</td> <td style="width: 1%;">&#160;</td> <td style="text-align: center; width: 15%;" nowrap="nowrap">$ .08 to $.50</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td>Exercise price</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">$ .01 to $.65</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Expected life</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">2.0 to 6.5 years</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Expected volatility</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">54% to 68%</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;">Assumed dividend rate</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">- %</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">Risk-free interest rate</td> <td>&#160;</td> <td style="text-align: center;" nowrap="nowrap">.13% to 2.97%</td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <div>&#160;</div> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The inputs to the Black-Scholes model during 2009, 2010, 2011 and 2012 were as follows:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="background-color: #ccffcc; vertical-align: top;"><td style="width: 80%; padding-right: 0.8pt;">Stock price</td><td style="width: 2%; padding-right: 0.8pt;">&#160;</td><td style="text-align: center; width: 18%; padding-right: 0.8pt;">$ .08 to $.50</td></tr><tr style="background-color: white; vertical-align: top;"><td style="padding-right: 0.8pt;">Exercise price</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">$ .01 to $.65</td></tr><tr style="background-color: #ccffcc; vertical-align: top;"><td style="padding-right: 0.8pt;">Expected life</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">2.0 to 6.5 years</td></tr><tr style="background-color: white; vertical-align: top;"><td style="padding-right: 0.8pt;">Expected volatility</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">54% to 68%</td></tr><tr style="background-color: #ccffcc; vertical-align: top;"><td style="padding-right: 0.8pt;">Assumed dividend rate</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">- %</td></tr><tr style="background-color: white; vertical-align: top;"><td style="padding-right: 0.8pt;">Risk-free interest rate</td><td style="padding-right: 0.8pt;">&#160;</td><td style="text-align: center; padding-right: 0.8pt;">.13% to 2.97%</td></tr></table> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The original valuations, annual gain (loss) and end of year valuations are shown below:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Initial&#160;Value</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Annual<br />Gain&#160;(Loss)</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Value at<br />12/31/09</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2010<br />Gain (Loss)</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Value at<br />12/31/10</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">2011<br />Gain (Loss)</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Value&#160;at<br />12/31/2011</font></td> <td style="padding-bottom: 1pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="width: 30%;"><font style="font-size: 8pt;">January 1, 2009 adoption</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">479,910</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">(390,368</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">)</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">870,278</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">868,772</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">1,506</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">(88,290</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">)</font></td> <td style="width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right; width: 7%;"><font style="font-size: 8pt;">89,796</font></td> <td style="text-align: left; width: 1%;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;"><font style="font-size: 8pt;">Warrants issued in quarter ended 6/30/2009</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">169,854</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">20,847</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">149,007</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">147,403</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">1,604</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(4,689</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">6,293</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;"><font style="font-size: 8pt;">Warrants issued in quarter ended 9/30/2009</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">39,743</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(738</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">40,481</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">40,419</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">62</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(1,562</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">1,624</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">Warrants issued in quarter ended 12/31/2009</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">12,698</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">617</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">12,081</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">12,053</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">28</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">(724</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; padding-bottom: 1pt;"><font style="font-size: 8pt;">752</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: right;"><font style="font-size: 8pt;">Subtotal</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">702,205</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">1,071,847</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;"><font style="font-size: 8pt;">Warrants issued in quarter ended 3/31/2010</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">25,553</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">25,014</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">539</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(5,571</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">6,109</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left;"><font style="font-size: 8pt;">Warrants issued in quarter ended 6/30/2010</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">31,332</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">30,740</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">592</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">(6,122</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">)</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">6,714</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">Warrants issued in quarter ended 9/30/2010</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">31,506</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">20,811</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">10,615</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">(44,160</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right;"><font style="font-size: 8pt;">54,775</font></td> <td style="text-align: left; padding-bottom: 1pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: right; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">Total</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">790,596</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">(369,642</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">1,071,847</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">1,145,292</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">14,946</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">(151,118</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 2.5pt double; text-align: left;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 2.5pt double; text-align: right;"><font style="font-size: 8pt;">166,072</font></td> <td style="text-align: left; padding-bottom: 2.5pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">The original valuations, annual gain/(loss) and end of year valuations are shown below:</p><p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p><table style="width: 100%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"><tr style="vertical-align: bottom;"><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Initial&#160;Value</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Annual Gain&#160;(Loss)</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Value at 12/31/09</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">2010 Gain (Loss)</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Value at 12/31/10</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">2011 Gain (Loss)</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Value at 12/31/2011</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">2012 Gain (Loss)</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: center; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">Value at 6/30/2012</font></td><td style="padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: center; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;" colspan="2"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="padding-bottom: 0px; padding-left: 0px; width: 19%; font-size: 10pt;"><font style="font-size: 7pt;">January 1, 2009 adoption</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">479,910</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">(390,368</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">870,278</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">868,772</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">1,506</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">(88,290</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">89,796</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">43,266</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; width: 6%; font-size: 10pt;"><font style="font-size: 7pt;">46,530</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; width: 1%; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 6/30/2009</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">169,854</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">20,847</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">149,007</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">147,403</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,604</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(4,689</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">6,293</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">6,293</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">-</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 9/30/2009</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">39,743</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(738</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">40,481</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">40,419</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">62</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(1,562</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,624</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,608</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">16</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 12/31/2009</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">12,698</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">617</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">12,081</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">12,053</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">28</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(724</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">752</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">556</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 1pt; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">196</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; padding-left: 0.24in; font-size: 10pt;"><font style="font-size: 7pt;">Subtotal</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">702,205</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,071,847</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 3/31/2010</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">25,553</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">25,014</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">539</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(5,571</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">6,109</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">3,209</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">2,900</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 6/30/2010</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">31,332</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">30,740</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">592</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(6,122</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">6,714</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">3,247</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">3,467</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: white; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; text-indent: -0.12in; padding-left: 0.12in; font-size: 10pt;"><font style="font-size: 7pt;">Warrants issued in quarter ended 9/30/2010</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">31,506</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">20,891</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">10,615</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(44,160</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">54,775</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,418</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 1pt solid; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">53,357</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td></tr><tr style="background-color: #ccffcc; vertical-align: bottom;"><td style="text-align: left; padding-bottom: 0px; padding-left: 0.24in; font-size: 10pt;"><font style="font-size: 7pt;">Total</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">790,596</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(369,642</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,071,847</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">1,145,292</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">14,946</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">(151,118</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">)</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">166,063</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">59,597</font></td><td style="text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">&#160;</font></td><td style="border-bottom: black 2.5pt double; text-align: left; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">$</font></td><td style="border-bottom: black 2.5pt double; text-align: right; padding-bottom: 0px; padding-left: 0px; font-size: 10pt;"><font style="font-size: 7pt;">106,466</font></td></tr></table> 0 94331 67498 0 3274 29294 P3Y P5Y P3Y P5Y 3000000 500000 184120 373000 433446.51 280000 175000 475000 0.04 75000 100000 10000 0 0 0 0 0 95 150000 0.35 0.65 0.46 0.18 0.084 0.20 1.67 1.67 P3Y P10Y P7Y6M P2Y6M P5Y P2Y P6Y6M P2Y P6Y6M P2Y6M7D P1Y9M10D P2Y3M7D P10Y P3Y11M8D P2Y1M27D P3Y P2Y5M12D P10M13D P8Y7M6D P10M13D P2Y1M9D P2Y3M7D P8Y10M13D P2Y3M28D P11M12D P2Y8M26D P1Y11M4D P1Y6M18D P2Y18D P7M27D P5M26D P3Y8M8D P2Y2M12D P2Y P6Y6M P1Y8M4D P2Y2D P2Y7D P1Y8M22D P10M10D P8M12D P2Y6M P1Y10M2D P1Y10M20D P1Y9M7D P6Y6M P3Y5M8D P3Y4M24D P3Y P4M13D P1Y10M17D P4M13D P1Y11M12D P1Y7M9D P1Y9M7D P3Y9M26D P1Y10M2D P7M6D P2Y2M26D P1Y4M20D P10M13D P1Y17M12D P7M2D P7M9D 2013-06-30 28060 0.0373 0.0038 0.59 0.63 0.00 0.00 0.00 0.00 0.00 0.00 Should there be a change in control of the Company (defined as greater than 50% of the Company''''s outstanding stock or substantially all of its assets being transferred to one independent person or entity). 2000000 1000000 500000 0 67000 8500 4107000 100000 200000 32000 16800 50000 50000 50000 2178000 1153000 525000 0 1100 0 0 800000 6192094 0.10 2015-08-11 1546667 32074000 67316108 1166667 98603584 175000 0.15 2008-07-02 571429 6192094 0.46 2014-07-02 0 200000 0.15 2017-06-29 700000 0.15 2017-06-29 2012-08-13 17956 20950 41898 92776 47882 121278 1291174 5184511 1496174 7372813 3498218 10670925 2771629 500000 631429 2328572 500000 35913 5333334 26882251 71826 105000 5985 5985 5797611 2383334 200000 1882353 2926626 4028606 1375000 1243292 2445239 1729550 998597 5797611 26321154 8657746 1333333 500000 631429 2328572 500000 200000 27752439 71826 30000 2060000 5985 5414895 200000 1882353 2543910 4028606 1375000 775000 2532739 1729550 350000 4263042 4263042 0.35 0.35 0.07 0.15 3999857 3999857 23942 71826 35913 5984 28502 5985 0 5075204 1243292 2971629 1243292 598207 2188302 205000 105000 3435662 3435662 2210000 2060000 18222243 18222243 2000618 2483334 -87500 2601285 75000 0 -11971 -8979 -207956 -2010917 -83941 -382716 -648597 -345679 -1170000 1.67 2.62 1.67 1.25 1.67 1.04 0.26 0.45 0.27 0.49 0.19 0.44 0.075 0.12 0.13 0.10 0.16 0.01 0.15 0.23 0.02 0.50 0.15 1.67 0.11 0.18 0.17 0.01 0.46 0.25 0.35 0.20 0.65 0.35 0.11 0.21 0.075 0.15 0.12 0.13 0.1 0.16 0.01 0.19 0.02 0.5 0.15 1.67 0.12 0.18 0.17 0.01 0.46 0.25 0.35 0.2 0.65 0.35 1.67 0.85 0.02 1.67 0.35 1.67 0 0.336 0.102 0.46 0.45 0.35 0.01 0.2 0.02 0.35 0.65 0.37 0.13 0.65 0.5 0.34 0.17 0.01 0.65 0.15 0.01 1.67 0.02 0.0126 0.46 0.35 0.14 0.35 1.67 0.075 0.15 0.50 0.01 0.13 0.1 0.01 0 0.65 0.25 0.35 0.02 0.65 0.20 0.01 0.15 0.2 1.67 0 0.01 3.76 1.67 0.43 0.48 0.73 0.01 0.35 0.01 0.62 0.46 0.01 0.01 0.02 0.0013 0.0013 0.0013 0.0013 0.045 0.0297 0.0297 0.0297 0.0297 0.53 0.54 0.54 0.54 0.54 0.66 0.68 0.68 0.68 0.68 100000 The Company compiled historical volatilities over a period of 2 to 7 years of 15 small-cap medical companies traded on major exchanges and 10 mid-range medical companies on the OTC Bulletin Board and combined the results using a weighted average approach. P5Y P24M P22M P18M P24M P24M 170000 170000 2008-04-30 2012-03-31 2014-12-31 2014-12-31 2011-05-04 2012-03-15 2012-03-30 2012-06-14 2012-04-16 2014-12-31 2011-04-30 2015-01-01 2012-12-23 200000 1111112 320000 200000 1595239 96613 7232 4888660 4540212 0.13 0.13 P9Y2M26D P2Y1M24D 130123 39491 P2Y "Under the terms of the Company''''s agreement with investors in the October 2008 financing, 1,920,000 shares of common stock were the maximum number of shares allocated to the Company''''s existing shareholders at the time of the offering (also referred to as the original shareholders or the ""Founders""). Since the total of the Company''''s fully diluted shares of common stock was greater than 1,920,000 shares, in order for the Company to proceed with the offering, the Board of Directors approved a reverse stock split of 1-for-1.2545. After this split was approved, additional options and warrants were identified, requiring a second reverse stock split in order to reach the 1,920,000 shares. The second reverse stock split on the reduced 1-for-1.2545 balance was determined to be 1-for-1.33176963. Taken together, if only one reverse stock split was performed, the number would have been a reverse stock split of 1-for-1.670705. On June 6, 2008, the Board of Directors approved the first reverse stock split. The authorized number of shares of common stock of 20,000,000 was proportionately divided by 1.2545 to arrive at 15,942,607. On October 20, 2008, the Board of Directors (i) approved the second reverse stock split pursuant to which the authorized number of shares of common stock of 15,942,607 was proportionately divided by 1.33177 to arrive at 11,970,994 shares and (ii) approved a resolution to increase the number of authorized shares of the Company''''s common stock from 11,970,994 to 40,000,000, which was approved by the Company''''s shareholders holding a majority of the shares entitled to vote thereon at a special meeting of shareholders held on December 3, 2008." -1352709 -388106 -864819 -4486879 -11868956 -2135775 -2849142 -14718098 12771683 22659526 19630580 24282433 5805714 54656895 44619113 7920827 0 0 0 0 0 12771683 22659526 19630580 24282433 5805714 54656895 44619113 7920827 14169143 24679688 32679862 32408692 1579000 2626000 3290000 56000 49000 57000 1635000 2675000 3347000 1635000 2675000 3347000 0 0 0 1.00 1.00 11254000 14104000 1063056 132371 9571 19298 0 90610 87640 100000 50000 0 100000 457300 0 0 0 6000 10267 1450714 100000 100000 126046 32000 185069 100000 11840 0 50000 50000 10000 63000 98659 457300 0 89300 37500 698100 0 100000 50000 32000 200000 100000 16800 0 10000 0 100000 0 89300 0 66267 820561 608800 1084300 100000 1206082 457300 0 9390 67629 7229 12702 1341 0 23954 0 14931 4960 0 0 0 0 0 0.1025 0.06 0.08 0.50 0.0325 0.60 0.06 0.10 0.08 0.50 0.12 0.08 0.10 0.06 0.10 0.12 0.08 0.12 0.08 0.08 0.06 0.08 0.12 285715 0.15 0.15 0.35 0.35 0.18 0.18 0.1 0.18 0.15 0.084 0.84 0.02 967 20000 116 30000 280 0 16800 five years five years 49863 24293 49975 26084 0.35 0.08 0.50 0.08 0.50 0.08 0.50 0.35 0.08 0.50 0.46 0.01 0.65 0.01 0.65 0.01 0.65 0.46 0.01 0.65 479910 169854 39743 12698 702205 25553 31332 31506 -390368 868772 43266 -88290 20847 6293 147403 -4689 -738 1068 40419 -1562 617 556 12053 -724 3209 25014 -5571 3247 30740 -6122 1418 20891 -44160 870278 46530 89796 1506 149007 0 1604 6293 40481 16 62 1624 12081 196 28 752 1071847 2900 539 6109 3467 592 6714 53357 10615 54775 479910 0.50 0.22 486564 6654 25000 3000000 30000 2000 46000 6000 160000 75000 0.35 0.35 0.2000 0.2000 240000 600000 225000 98659 600000 240000 100000 357282 240000 0.24 0.24 84657 300000 300000 300000 84657 300000 60000 60000 0.35 0.065 0.065 1647048 4615385 92000 600000 1546667 7500000 277778 0.09 30000 0.15 4615385 10267 103333 0 0 <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><font style="color: black;"><b>NOTE 6 &#8211;</b></font><b> CONVERTIBLE DEBENTURE</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The Company issued a convertible debenture to Andcor Companies, Inc. (&#8220;Andcor&#8221;)&#160;with principal of&#160;$10,000 and interest at 10.25% that originally matured in 2007. The debenture is convertible into shares of the Company&#8217;s common stock at the lower of $0.90 per share or the price per share at which the next equity financing agreement is completed, and is now re-set to $0.35 per share. The convertible debenture has not yet been paid, but the maturity of the note was extended, in May 2010, to March 31, 2012.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>NOTE 7 &#8211; NOTES PAYABLE</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">On December 20, 2011, the Company signed a Note Purchase Agreement, with Dr. Samuel Herschkowitz. Pursuant to this agreement, Dr. Herschkowitz purchased a 20.0% note due June 20, 2012 in the principal amount of $225,000. The Company&#8217;s obligations under the note are secured by the grant of a security interest in substantially all tangible and intangible assets of the Company. The Company issued to Dr. Herschkowitz an equity bonus consisting of 1,546,667 shares of common stock. An additional 7,500,000 shares are required to be transferred to Dr. Herschkowitz upon the occurrence of an event of default on the note.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">As long as any amount payable under the note remains outstanding, Dr. Herschkowitz or his designee is entitled to appoint a special advisor to the Company&#8217;s Board of Directors, who will be appointed as a member of the Board upon request. Pursuant to this authority, Josh Kornberg was appointed to the Board on March 9, 2012.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"><b>Reclassifications</b></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;"></p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">Certain amounts in the prior period&#8217;s financial statements have been reclassified to conform with the 2011 presentation.&#160; These reclassifications had no effect on the net loss or stockholders&#8217; deficit for any period.</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">The&#160;Company&#8217;s rent obligation for the years 2012 and 2013 is as follows:</p> <p style="margin: 0pt 0px 0pt 0.5in; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 92.5%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; width: 87%;">2012</td> <td style="width: 1%;">&#160;</td> <td style="text-align: left; width: 1%;">$</td> <td style="text-align: right; width: 10%;">31,000</td> <td style="text-align: left; width: 1%;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left;">2013</td> <td>&#160;</td> <td style="text-align: left;">$</td> <td style="text-align: right;">26,000</td> <td style="text-align: left;">&#160;</td> </tr> </table> 2002-04-23 2002-04-23 172489 1937638 605000 533000 10000 0.1025 lower of $0.90 0.2000 0.2000 0.2000 7500000 7500000 89300 31000 26000 12000 3000000 5000000 1154000 1154000 August 2012 20-Jun-12 300000 600000 1275 (1) Founders shares, 1,000,000 pre-split (2) 23,492 (40,000 pre-split) shares valued at $.0167 per share as compensation for loan guarantees by management (5) Compensation for loan guarantees by management (3) Investment including 670 shares issued as a 10% finders fee (4) For payment of patent legal fees (6) For vendor contractual consideration (7) Employment agreements (8) Investment (10) Investment, "October 2008 financing". (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. 89300 00014461592010-01-012010-09-30 790596 -369642 0001446159bior:ValueAt2009Member2010-01-012010-09-30 0001446159bior:ValueAt2010Member2010-01-012010-09-30 0001446159bior:ValueAt2011Member2010-01-012010-09-30 0001446159bior:ValueAt2012Member2010-01-012010-09-30 0001446159bior:GainLoss2010Member2010-01-012010-09-30 0001446159bior:GainLoss2011Member2010-01-012010-09-30 0001446159bior:GainLoss2012Member2010-01-012010-09-30 1071847 14946 166063 106466 1145292 -151118 59597 0.0137 0.12 285715 0.35 12360 2012-03-31 0.08 0.35 0.08 2012-03-31 0.50 0.18 2012-03-31 0.55 0.08 2012-04-16 0.60 0.10 2012-03-15 0.18 0001446159bior:NotePayableIssuedSevenMember2011-01-012011-12-31 0.10 2012-12-23 0.84 0.06 0.15 0.12 0.18 2012-12-23 0001446159us-gaap:MinimumMemberbior:NotePayableIssuedTenMember2011-01-012011-12-31 0001446159us-gaap:MaximumMemberbior:NotePayableIssuedTenMember2011-01-012011-12-31 0.10 0.084 2012-08-21 0.50 00014461592012-01-012012-03-31 <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>NOTE </b>1<b> &#8212; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Nature of Operations and Continuance of Operations</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">BioDrain Medical, Inc. (the "Company") was incorporated under the laws of the State of Minnesota in 2002. The Company is developing an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and has a stockholders&#8217; deficit. These factors raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Management hired an investment banker in 2010 to raise an additional $3 to $5 million in new equity. The banker was unable to raise the expected $500,000 by September 30, 2010 and the balance within three months, but the Company raised approximately $229,000 in equity and $605,000 in convertible debt in 2010 and $1,154,000 in equity and $533,000 in convertible debt in 2011 through alternative means. The Company's April 1, 2009 510(k) clearance from the FDA to authorize the Company to market and sell its FMS products is being received very positively. The Company has a private investor that has committed $300,000 to $600,000 in 2012 with potential additional investment subsequent to June 2012.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Recent Accounting Developments</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">In the first quarter of 2011 we adopted new guidance on separating consideration in multiple-deliverable arrangements. The guidance addresses how to determine whether an arrangement involving multiple deliverables contains more than one unit of accounting and how the consideration should be allocated among the separate units of accounting. The adoption of this guidance did not have a material impact on our financial statements.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Valuation of Intangible Assets</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">We review identifiable intangible assets for impairment in accordance with ASC 360- <i>Property, Plant and Equipment</i> ("ASC 360"), whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management's best estimate of the related risks and return at the time the impairment assessment is made.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Our accounting estimates and assumptions bear various risks of change, including the length of the current economic downturn facing the United States, the expansion of the slowdown in consumer spending in the U.S. medical markets despite the early expressed opinions of financial experts that the medical market would not be as affected as other markets and failure to gain acceptance in the medical market.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Accounting Policies and Estimates</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Presentation of Taxes Collected from Customers</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Sales taxes are imposed on the Company&#8217;s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company&#8217;s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Shipping and Handling</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Advertising</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Advertising costs are expensed as incurred. There were no advertising expenses for 2011 or 2010.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Research and Development</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Research and development costs are charged to operations as incurred.&#160;&#160;Research and development costs were $0 and approximately $10,000 for 2011 and 2010, respectively.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Revenue Recognition</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">The Company recognizes revenue in accordance with the SEC&#8217;s Staff Accounting Bulletin No. 101, <i>Revenue Recognition in Financial Statements</i>, as amended by Staff Accounting Bulletin No. 104 (together, SAB 101), and ASC 605- <i>Revenue Recognition.</i></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company&#8217;s standard terms specify that shipment is FOB BioDrain and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the FMS units as well as shipments of cleaning solution kits. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company&#8217;s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer&#8217;s right of return is limited only to the Company&#8217;s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the FMS unit or significant quantities of cleaning solution kits may be returned. Additionally, since the Company buys both the FMS units and cleaning solution kits from &#8220;turnkey&#8221; suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Receivables</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company has determined there will be no losses on balances outstanding at December 31, 2011.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Inventories</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as&#160;follows:</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <table style="width: 92%; border-collapse: collapse; margin-left: 0.5in; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 0in 0in 0in;" class="msonormaltable" border="0" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>December&#160;</b>31<b>,</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>&#160;</b></font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>December&#160;</b>31,</font></p> </td> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="padding: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>&#160;</b></font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">2011<b></b></font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>&#160;</b></font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>&#160;</b></font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom" colspan="2" nowrap="nowrap"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">2010<b></b></font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; padding-top: 0in;" valign="bottom" nowrap="nowrap"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>&#160;</b></font></p> </td> </tr> <tr style="mso-yfti-irow: 2;"> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom" colspan="2"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 3;"> <td style="width: 74%; background: #ccffcc; padding: 0in;" valign="bottom" width="74%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Finished goods</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">$</font></p> </td> <td style="width: 10%; background: #ccffcc; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">94,331</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">$</font></p> </td> <td style="width: 10%; background: #ccffcc; padding: 0in;" valign="bottom" width="10%"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">-</font></p> </td> <td style="width: 1%; background: #ccffcc; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 4;"> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Raw materials</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">3,274</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="border-bottom: black 1pt solid; border-left: medium none; background: white; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">-</font></p> </td> <td style="padding-bottom: 1pt; padding-left: 0in; padding-right: 0in; background: white; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 5; mso-yfti-lastrow: yes;"> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Total</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">$</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; border-top: medium none; border-right: medium none; padding-top: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">97,605</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; background: #ccffcc; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">$</font></p> </td> <td style="border-bottom: black 2.25pt double; border-left: medium none; background: #ccffcc; border-top: medium none; border-right: medium none; padding: 0in;" valign="bottom"> <p align="right" style="text-align: right;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">-</font></p> </td> <td style="padding-bottom: 2.5pt; padding-left: 0in; padding-right: 0in; background: #ccffcc; padding-top: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> </tr> </table> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Property and Equipment</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <table style="width: 92%; border-collapse: collapse; margin-left: 0.5in; mso-yfti-tbllook: 1184; mso-padding-alt: 0in 0in 0in 0in;" class="msonormaltable" border="0" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes;"> <td style="width: 85%; padding: 0in;" valign="bottom" width="85%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="width: 2%; padding: 0in;" valign="bottom" width="2%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="width: 12%; padding: 0in;" valign="bottom" width="12%"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Years</font></p> </td> <td style="width: 1%; padding: 0in;" valign="bottom" width="1%"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 1;"> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Computers and office equipment</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">3</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> </tr> <tr style="mso-yfti-irow: 2; mso-yfti-lastrow: yes;"> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Furniture and fixtures</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p align="center" style="text-align: center;" class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">5</font></p> </td> <td style="padding: 0in;" valign="bottom"> <p class="msonormal"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> </td> </tr> </table> <p style="margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Intangible Assets</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Intangible assets consist of trademarks and patent costs. These assets are not subject to amortization until the property patented is in production. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified. No impairment losses have been identified by management.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Income Taxes</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">The Company accounts for income taxes in accordance with ASC 740- <i>Income Taxes (&#8220;ASC </i><i>740</i><i>&#8221;)</i>. Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Tax years subsequent to 2007 remain open to examination by federal and state tax authorities.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Patents and Intellectual Property</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">In June 2008, the Company completed and executed an agreement to secure exclusive ownership of the Company&#8217;s primary patent from an inventor, Marshall Ryan. Mr. Ryan received a combination of cash and warrants, and he will receive a 4% royalty on STREAMWAY FMS (the Product) sales for the life of the patent. At the signing of the agreement, Mr. Ryan received $75,000 in exchange for the exclusive assignment of the patent. In addition, on June 30, 2009, Mr. Ryan, through his Mid-State Stainless, Inc. entity, was entitled to receive $100,000 as payment (currently recorded as an account payable with the Company) for past research and development activities. Should Mr. Ryan be utilized in the future for additional product development activities, he will be compensated at a rate of $95.00 per hour.</font></p> <p style="margin: 0in 0in 0pt;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Mr. Ryan also received a warrant, with immediate vesting, to purchase 150,000 shares of the Company's common stock at a price of $.35 per share. The warrant has a five-year term ending on June 30, 2013 and was assigned a value of $28,060 using a Black-Scholes formula. This amount was expensed as consulting expense in 2008 using a five-year expected life, a 3.73% risk-free interest rate, an expected 59% volatility and a zero dividend rate. Should there be a change in control of the Company (defined as greater than 50% of the Company&#8217;s outstanding stock or substantially all of its assets being transferred to one independent person or entity), Mr. Ryan will be owed a total of $2 million to be paid out over the life of the patent if the change in control occurs within 12 months of the first sale of the product; or $1 million to be paid out over the life of the patent if the change in control occurs between 12 and 24 months of the first sale of the product; or $500,000 to be paid out over the life of the patent if the change in control occurs between 24 and 36 months of the first sale of the product. There will be no additional payment if a change in control occurs more than 36 months after the first sale of the product.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Subsequent Events</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">&#160;</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font size="2" style="font-family:times new roman,times"><font style="font-family: times new roman,times;">The Company has evaluated subsequent events through the date of this filing.&#160; </font><font style="font-family: times new roman,times;"></font>On March28,2012, BioDrain Medical, Inc. (the &#8220;Company&#8221;), entered into a Convertible Note Purchase Agreement, dated as of March28,2012 (the &#8220;SOK Purchase Agreement&#8221;) between the Company and SOK Partners, LLC (&#8220;SOK Partners&#8221;), an investment partnership. Josh Kornberg, who is a member of the Company&#8217;s Board of Directors, and Dr. Samuel Herschkowitz are affiliates of the manager of SOK Partners. Pursuant to the SOK Purchase Agreement, the Company issued a20.0% convertible note due August2012 in the principal amount of up to $600,000. Principal and accrued interest on the note are due and payable on August28,2012. The Company&#8217;s obligations under the note are secured by the grant of a security interest in substantially all tangible and intangible assets of the Company. The SOK Purchase Agreement and the note include customary events of default that include, among other things, non-payment defaults, covenant defaults, inaccuracy of representations and warranties, cross-defaults to other indebtedness and bankruptcy and insolvency defaults. The occurrence of an event of default could result in the acceleration of the Company&#8217;s obligations under the note, and interest rate of twenty-four (24%) percent per annum accrues if the note is not paid when due.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">On March 28, 2012, the Company received an advance of $84,657 under the note, including a cash advance of $60,000 net of a prepayment of interest on the first $300,000 in advances under the note. The holder of the note is entitled to convert the note into shares of common stock of the Company at an initial conversion price per share of $0.065 per share, subject to adjustment in the event of (1) certain issuances of common stock or convertible securities at a price lower than the conversion price of the note, and (2) recapitalizations, stock splits, reorganizations and similar events. In addition, the Company is required to issue two installments of an equity bonus to SOK Partners in the form of common stock valued at the rate of $0.065 per share. In April 2012, the Company issued the first equity bonus to SOK Partners, consisting of 4,615,385 shares of common stock, with a second installment due within five business days after SOK Partners has made aggregate advances under the note of at least $300,000. Until the maturity date of the note, if the Company obtains financing from any other source without the consent of SOK Partners, then the Company is required to issue additional bonus equity in an amount equal to $600,000 less the aggregate advances on the note made prior to the breach.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">As long as any amount payable under the note remains outstanding, SOK Partners or its designee is entitled to appoint a special advisor to the Company&#8217;s Board of Directors, who will be appointed as a member of the Board upon request.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">The foregoing description does not purport to be complete and is qualified in its entirety by the terms and conditions of the SOK Purchase Agreement, including the form of note, which is filed as an exhibit to this Annual Report on Form 10-K.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">On March 28, 2012, the Company signed an Amended and Restated Note Purchase Agreement, dated as of December 20, 2011, with Dr. Samuel Herschkowitz (as amended, the &#8220;Herschkowitz Purchase Agreement&#8221;). Pursuant to the Herschkowitz Purchase Agreement, the Company issued a 20.0% convertible note due June 20, 2012 in the principal amount of $240,000 for previous advances under the note. The Company&#8217;s obligations under the note are secured by the grant of a security interest in substantially all tangible and intangible assets of the Company. The Company has previously issued to Dr. Herschkowitz an equity bonus consisting of 1,546,667 shares of common stock. An additional 7,500,000 shares are required to be transferred to Dr. Herschkowitz upon the occurrence of an event of default on the note.</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">As long as any amount payable under the note remains outstanding, Dr. Herschkowitz or his designee is entitled to appoint a special advisor to the Company&#8217;s Board of Directors, who will be appointed as a member of the Board upon request. Pursuant to this authority, Josh Kornberg was appointed to the Board on March 9, 2012. The Company does not believe there are other subsequent events that require disclosure. </font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2">Subsequent to year end an institutional investor converted $92,000 of Convertible Debt to 1,647,048 shares of common stock</font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font style="font-family: times new roman,times;; font-family:times new roman,times" size="2"><b>Reclassifications</b></font></p> <p style="margin: 0in 0in 0pt 0.5in;"><font size="2" style="font-family:times new roman,times"><font style="font-family: times new roman,times;">Certain amounts in the prior period&#8217;s financial statements have been reclassified to conform with the 2011</font><font style="font-family: times new roman,times;"> presentation.&#160; These reclassifications had no effect on the net loss or stockholders&#8217; deficit for any period.</font></font></p> 24 month 24 month 2012-06-20