v2.4.0.6

Statements of cash flows (USD $)	6 Months Ended
Statements of cash flows (USD $)	Jun. 30, 2012	Jun. 30, 2011
Net loss	$ 183,524	$ (540,400)
Depreciation and amortization	189,040	189,284
Consulting services rendered for convertible note	82,006
Common stock issued for consulting services and prepaid expenses	253,250	20,600
Preferred warrants issued to placement agent	1,293,509
Fair value adjustment on derivative liability	(2,342,142)
(Increase) decrease in accounts receivable	20,763
(Increase) decrease in inventory	191,490
Decrease in prepaid expenses	(293,000)
Increase in derivative liability	405,052
Increase in accounts payable and accrued expenses	(1,048,998)	499,192
Net cash (used in) operating activities	(1,065,506)	168,676
Acquisition of equipment	(12,635)
Patent fees	(36,569)	(9,560)
Net cash (used in) investing activities	(49,204)	(9,560)
Proceeds received from private placement	3,751,891
Proceeds(repayment) from convertible notes payable	(112,250)
Advance from related party	1,500
Proceeds(repayment) from notes payable - related parties	(129,792)	82,233
Net cash provided by financing activities	3,511,349	82,233
Operating activities	1,705	(240,853)
Net cash flows from disctontinued operations	1,705	(240,853)
Net decrease in cash and cash equivalents	2,398,344	496
Cash and cash equivalents, beginning of period	13	18
Cash and cash equivalents, end of period	2,398,357	514
Common stock issued for consulting services	253,250	20,600
Deferred financing fees recorded for issuance of warrants	256,762
Issuance of Series D Preferred Stock For Obligation to issue Series D Pref. shares	201,539
Issuance of Series D Preferred Stock in conversion of convertible note	100,000
Common stock issued for prepaid consulting services	$ 660,000	$ 48,000

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

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