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 47 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
Statement of Cash Flows [Abstract]      
Net loss $ (2,935,396) $ (113,043) $ (4,855,854)
Depreciation and amortization 7,021 1,438 17,619
Stock-based compensation 1,832,667 13,609 1,857,843
Non-cash interest expense related to warrants and derivatives 157,523 49,535 278,194
Change in fair value of warrant and derivative liabilities (160,284) (21,637) (113,314)
Gain on settlement of convertible note and warrants     (137,632)
Changes in operating assets and liabilities:      
Prepaid expenses and other current assets (80,382)   (110,599)
Other Assets (90,000)   (90,000)
Accounts payable 594,635 199,064 1,742,383
Accrued liabilities 51,294 (11,763) 103,469
Related party liabilities (65,231) (224,508) (143,640)
Net cash used in operating activities (688,153) (107,305) (1,451,531)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchases of property and equipment (19,421) (23,294) (55,125)
Net cash used in investing activities (19,421) (23,294) (55,125)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from borrowings 505,000   957,548
Repayment of borrowings     (100,000)
Proceeds from issuance of common stock 183,362   187,382
Proceeds from issuance of convertible preferred stock   500,000 540,000
Costs of financings (26,187) (50,000) (76,187)
Proceeds from sale of warrant     35
Net cash provided by financing activities 662,175 450,000 1,508,778
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (45,399) 319,401 2,122
CASH AND CASH EQUIVALENTS - Beginning of period 47,521 1,232  
CASH AND CASH EQUIVALENTS - End of period 2,122 320,633 2,122
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Exchange of convertible promissory notes for preferred stock     195,342
Issuance of warrants to investors 2,567   58,911
Bifurcation of derivatives embedded in convertible notes 233,698   470,101
Preferred stock warrants reclassified from liabilities to equity     37,110
Issuance of convertible notes in lieu of payment of payable 21,250   153,777
Dividend to founder for assumption of debts     $ 365,870