Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) (USD $)
 6 Months Ended 30 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net (loss) from continuing operations $ (846,424) $ (70,911) $ (1,348,739)
Net (loss) from discontinued operations (155,479)    (155,479)
Adjustments to reconcile net (loss) to net cash used in operating activities:      
Stock based compensation 209,331    272,931
Amortization of license fees 2,941 2,940 14,705
Amortization of beneficial conversion feature of discontinued operations 5,803    5,803
Depreciation expense 2,170    2,215
Change in assets and liabilities      
(Increase) in other asset (579)    (579)
(Decrease) in other assets attributable to discontinued operations 727   727
Increase in accounts payable and accrued expenses 717,244 50,000 842,244
Increase in accounts payable attributable to discontinued operations 109    109
Increase in other current liabilities    509   
Net cash (used in) operating activities (64,157) (17,462) (366,063)
CASH FLOWS USED IN INVESTING ACTIVITIES:      
Purchase of license       (100,000)
Purchase of equipment (1,031,917)    (1,033,708)
Net cash provided by investing activities (1,031,917)    (1,133,708)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Cash assumed in reverse merger 11,150    11,150
Payments to related party for advances       (32,515)
Proceeds received from related party advances 937,743 17,462 1,372,647
Proceeds from the issuance of common stock converted to Series B Preferred Stock 150,000    150,000
Proceeds received from the issuance of common stock       8,618
Net cash provided by financing activities 1,098,893 17,462 1,509,900
EFFECT OF EXCHANGE RATE (738)    (738)
NET INCREASE IN CASH AND CASH EQUIVALENTS 2,081    9,391
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 7,310      
CASH AND CASH EQUIVALENTS - END OF PERIOD 9,391    9,391
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid during the period for:Interest         
Cash paid during the period for:Taxes         
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS      
Stock issued for services $ 209,331    $ 272,931