Quarterly report pursuant to sections 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
6 Months Ended 54 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss for the period $ (2,312,658) $ (1,629,848) $ (8,673,217)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 5,808 11,180 31,562
Gain on disposal of equipment     (3,750)
Stock-based compensation 1,400,760 83,603 2,082,186
Non-cash interest expense related to warrants and derivatives     763,316
Non-cash interest expense related to convertible notes 158,206 204,104 158,206
Change in fair value of warrant and derivative liabilities (205,171) 363,478 (597,571)
Gain on settlement of convertible note and warrants     (137,632)
Changes in operating assets and liabilities:      
Prepaid expenses and other current assets (84,721) (80,382) (420,219)
Accounts payable 720,128 512,485 2,926,668
Accrued liabilities 50,578 51,294 168,128
Related party liabilities   (65,232) (143,640)
Net cash used in operating activities (267,070) (549,318) (3,845,963)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchases of property and equipment   (23,581) (40,392)
Net cash used in investing activities   (23,581) (40,392)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from borrowings 272,848 527,500 1,530,396
Repayment of borrowings     (100,000)
Proceeds from issuance of common stock     1,797,941
Proceeds from the issuance of stock options     200,818
Proceeds from issuance of convertible preferred stock     540,000
Costs of financings     (76,187)
Proceeds from sale of warrant     35
Net cash provided by financing activities 272,848 527,500 3,893,003
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5,778 (45,399) 6,648
CASH AND CASH EQUIVALENTS - Beginning of period 870 47,521  
CASH AND CASH EQUIVALENTS - End of period 6,648 2,122 6,648
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Exchange of convertible promissory notes for preferred stock     195,342
Issuance of warrants to investors     371,180
Bifurcation of derivatives embedded in convertible notes     548,053
Preferred stock warrants reclassified from liabilities to equity 2,032   39,142
Issuance of convertible notes in lieu of payment of payable 284,313   438,090
Dividend to founder for assumption of debts     $ 365,870