Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
 6 Months Ended 30 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
Cash flows from operating activities      
Net loss $ (4,520,051) $ (134,511) $ (5,022,366)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock issued for services 125,000 63,600 188,600
Amortization of license fees 2,941 2,940 14,705
Depreciation expense 7,706    7,751
Impairment of goodwill 3,555,304    3,555,304
Change in assets and liabilities      
Increase in prepaid expenses and other assets 1,297    1,297
Increase in accounts payable and accrued liabilities 468,632 50,509 593,632
Increase in accounts payable attributable to discontinued operations 8,770    8,770
Net cash used in operating activities (350,401) (17,462) (652,307)
Cash flows used in investing activities      
Purchase of license       (100,000)
Cash assumed in reverse merger 11,150    11,150
Purchase of equipment (747,137)    (748,928)
Net cash used in investing activities (735,987)    (837,778)
Cash flows from financing activities      
Net proceeds from related party advances 936,381 17,462 1,338,770
Proceeds from issuance of common stock converted to Series B preferred stock 150,000    150,000
Proceeds from the issuance of common stock 1,362    9,980
Net cash provided by financing activities 1,087,743 17,462 1,498,750
Net increase in cash and cash equivalents 1,355    8,665
Cash and cash equivalents - beginning of period 7,310      
Cash and cash equivalents - end of period 8,665    8,665
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 125,000 63,600 188,600