Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENT OF STOCKHOLDERS DEFICIT

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CONSOLIDATED STATEMENT OF STOCKHOLDERS DEFICIT (USD $)
Common Stock Shares
Common Stock Amount
Additional Paid in capital
Accumulated Deficit
TotalMember
Balance, at Jan. 01, 2010 78,636,326 78,636 15,543,487 (19,407,726) (3,785,603)
Issuance of common stock warrants for directors fees $ 0 $ 0 $ 137,930 $ 0 $ 137,930
Issuance of common stock warrants to employees 0 0 87,500 0 87,500
Issuance of common stock for services 979,341 979 498,331 0 499,310
Issuance of common stock warrants for services 0 0 1,743,541 0 1,743,541
Conversion of convertible debentures 508,457 509 117,629 0 118,138
Issuance of common stock for finder's fees 225,000 225 36,175 0 36,400
Issuance of common stock warrants for finder's fees 0 0 66,863 0 66,863
Exercise of warrants. 11,190,213 11,190 1,893,437 0 1,904,627
Discount adjustment on convertible debt 0 0 122,284 0 122,284
Warrants issued for indemnity agreement 0 0 405,925 0 405,925
Issuance of common stock in repayment of loan 1,166,014 1,166 379,679 0 380,845
Derivative adjustments 0 0 4,453,035 0 4,453,035
Net loss.   0 0 (7,122,473) (7,122,473)
Balance. at Dec. 31, 2010 92,705,351 92,705 25,485,816 (26,530,199) (951,680)
Issuance of warrants to board of directors 0 0 87,278 0 87,278
Issuance of stock to consultants 137,594 138 34,862 0 35,000
Issuance of warrants to consultants 0 0 8,584 0 8,584
Issuance of common stock pursuant to private placements 3,193,334 3,193 404,307 0 407,500
Issuance of common stock for cashless warrants 82,667 83 (83) 0 0
Common stock issued in repayment of loan 1,317,398 1,317 163,358 0 164,675
Exercise of warrants, 2,600,000 2,600 257,400 0 260,000
Warrants issued for financing costs 0 0 500,626 0 500,626
Discounts on convertible debentures 0 0 130,422 0 130,422
Deferred finance charges 0 0 57,706 0 57,706
Rounding (325) 0 0 0 0
Net loss,   $ 0 $ 0 $ (2,731,610) $ (2,731,610)
Balance. at Dec. 31, 2011 100,036,019 100,036 27,130,276 (29,261,809) (2,031,497)