UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934.

 

For the quarterly period ended December 31, 2013

 

Commission File Number: 333-148471

 

NANOVIRICIDES, INC.

 

(Exact name of Company as specified in its charter)

 

NEVADA   76-0674577
(State or other jurisdiction)   (IRS Employer Identification No.)
of incorporation or organization)    

 

135 Wood Street, Suite 205

West Haven, Connecticut 06516

(Address of principal executive offices and zip code)

 

(203) 937-6137

(Company’s telephone number, including area code)

 

Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   x    No   ¨

 

Indicate by check mark whether the Company has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Company was required to submit and post such files). Yes x   No ¨

 

Indicate by check mark whether the Company is a larger accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one)

 

Large accelerated filer ¨ Accelerated filer ¨
Non-accelerated filer x Smaller reporting company ¨

 

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨    No x

 

The number of shares outstanding of the Company's Common Stock as of February 14, 2014 was approximately: 53,957,000

 

 
 

 

NanoViricides, Inc.

FORM 10-Q

INDEX

 

PART I FINANCIAL INFORMATION  
   
Item 1. Financial Statements  
   
Balance Sheets at December 31, 2013 (Unaudited) and June 30, 2013 3
   
Statements of Operations for the Three Months and Six Months Ended December 31, 2013 and 2012 and for the Period from May 12, 2005 (Inception) through December 31, 2013 (Unaudited) 4
   
Statement of Stockholders’ Equity For the period May 12, 2005 (inception through December 31, 2013 5
   
Statements of Cash Flows for the Six Months Ended December 31, 2013 and 2012 and for the Period from May 12, 2005 (Inception) through December 31, 2013 (Unaudited) 6
   
Notes to the Financial Statements (Unaudited) 8
   
Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations 31
   
Item 3.   Quantitative and Qualitative Disclosures About Market Risk 36
   
Item 4.   Controls and Procedures 36
   
PART II OTHER INFORMATION  
   
Item 1.   Legal Proceedings 38
   
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds 39
   
Item 3.   Defaults Upon Senior Securities 40
   
Item 4.   Mine Safety Disclosures 40
   
Item 5.   Other Information 40
   
Item 6.   Exhibits and Reports on Form 8-K 40
   
Signatures 40
   
Certifications  

 

2
 

Nanoviricides, Inc.

 

(A Development Stage Company)

Balance Sheets

 

   December 31, 2013   June 30, 2013 
   (Unaudited)     
         
 ASSETS          
 CURRENT ASSETS:          
 Cash and cash equivalents  $16,948,832   $13,923,245 
 Prepaid expenses   806,391    598,380 
           
 Total Current Assets   17,755,223    14,521,625 
           
 PROPERTY AND EQUIPMENT          
 Property and equipment   3,859,244    1,505,648 
 Accumulated depreciation   (1,138,437)   (1,036,752)
           
 Property and equipment, net   2,720,807    468,896 
           
 TRADEMARK          
 Trademark   458,954    458,954 
 Accumulated amortization   (46,308)   (41,921)
           
 Trademark, net   412,646    417,033 
           
  SECURITY DEPOSIT   2,000,000    1,000,000 
           
 Total Assets  $22,888,676   $16,407,554 
           
 LIABILITIES AND STOCKHOLDERS' EQUITY          
 CURRENT LIABILITIES:          
 Accounts payable  $244,280   $263,258 
 Accounts payable – related parties   886,592    710,567 
 Accrued expenses   224,890    204,359 
           
 Total Current Liabilities   1,355,762    1,178,184 
           
 LONG TERM LIABILITIES:          
 Debentures payable   3,744,327    3,468,073 
 Derivative liability   7,577,919    3,751,645 
 Total Long Term Liabilities   11,322,246    7,219,718 
           
 Total Liabilities   12,678,008    8,397,902 
           
 COMMITMENTS AND CONTINGENCIES          
           
 STOCKHOLDERS' EQUITY:          
 Series A Convertible Preferred stock, $0.001 par value, 4,000,000 shares designated,          
 2,996,612 and 2,990,000 shares issued and outstanding, respectively   2,997    2,990 
 Series B Convertible Preferred stock, $0.001 par value, 0 shares designated,          
 none issued and outstanding   -    - 
 Series C Convertible Preferred stock, $0.001 par value, 0 shares designated,          
 none issued and outstanding   -    - 
 Common stock, $0.001 par value; 85,714,286 shares authorized;          
 50,042,132 and 47,026,173 shares issued and outstanding, respectively   50,042    47,026 
 Additional paid-in capital   56,422,575    46,259,420 
 Deficit accumulated during the development stage   (46,264,946)   (38,299,784)
           
 Total Stockholders' Equity   10,210,668    8,009,652 
           
Total Liabilities and Stockholders' Equity  $22,888,676   $16,407,554 

 

See accompanying notes to the financial statements

 

3
 

Nanoviricides, Inc.

 

(A Development Stage Company)

Statements of Operations

                   For the
Period from
 
   For the
Three Months
   For the
Three Months
   For the
Six Months
   For the
Six Months
   May 12, 2005
(inception)
 
   Ended   Ended   Ended   Ended   through 
   December 31,
2013
   December 31,
2012
   December 31,
2013
   December 31,
2012
   December 31,
2013
 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
                     
OPERATING EXPENSES                         
Research and development  $1,130,478   $710,197   $2,304,699   $1,920,015   $25,108,759 
Refund credit research and development costs   -    -    -    -    (420,842)
General and administrative   620,934    533,407    1,335,495    917,229    14,350,343 
                          
 Total operating expenses   1,751,412    1,243,604    3,640,194    2,837,244    39,038,260 
                          
LOSS FROM OPERATIONS   (1,751,412)   (1,243,604)   (3,640,194)   (2,837,244)   (39,038,260)
                          
 OTHER INCOME (EXPENSE):                         
Interest income   14,501    15,495    24,061    51,453    291,759 
Interest expense   (125,514)        (246,500)        (423,538)
Discount on convertible debentures   (140,773)   -    (276,254)   -    (1,264,687)
Beneficial conversion feature of convertible debentures   -    -    -    -    (713,079)
Change in fair market value of derivatives   310,816    19,724    (3,826,275)   (226,549)   (5,117,141)
                          
Other income (expense), net   59,030    35,219    (4,324,968)   (175,096)   (7,226,686)
                          
LOSS BEFORE INCOME TAX PROVISION   (1,692,382)   (1,208,385)   (7,965,162)   (3,012,340)   (46,264,946)
                          
INCOME TAX PROVISION   -    -    -    -    - 
                          
NET LOSS  $(1,692,382)  $(1,208,385)  $(7,965,162)   (3,012,340)  $(46,264,946)
                          
NET LOSS PER COMMON SHARE                         
- BASIC AND DILUTED:  $(0.03)  $(0.03)  $(0.16)   0.07      
                          
Weighted average common shares outstanding                         
- basic and diluted   50,031,363    45,098,572    48,851,696    44,946,015      

 

See accompanying notes to the financial statements

 

4
 

NanoViricides, Inc.
(A Development Stage Company)
Statement of Stockholders' Equity
For the period from June 30, 2010 through March 31, 2013
(Unaudited)

 

                             Deficit    
                             Accumulated    
  Series A Preferred Stock: Par $0.001  Series B Preferred Stock: Par $0.001  Series C Preferred Stock: Par $0.001  Common Stock: Par $0.001  Additional  During the  Total 
  Number of     Number of     Number of     Number of     Paid-in  Development  Stockholders' 
  Shares  Amount  Shares  Amount  Shares  Amount  Shares  Amount  Capital  Stage  Equity 
                                  
Please refer to Form 10K for the fiscal year ended June 30, 2012 filed with SEC on October 15, 2012 for equity transactions occurred prior to June 30, 2009
                                             
Balance, June 30, 2010  7,593,750  $7,594   260,000  $260   -  $-   133,980,471  $133,981  $23,116,612  $(16,739,743) $6,518,704 
                                             
Common shares issued for conversion of Series B Preferred Shares at $1.51 per share, July 7, 2010                          397,088   397           397 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, July 7, 2010          (60,000)  (60)                          (60)
Dividend paid to Seaside 88, LP, July 7, 2010                                  (9,973)      (9,973)
Common shares issued as dividend to Seaside 88, LP at $1.65 per share, July 7, 2010                          6,061   6   9,967       9,973 
Derivative liability - retirement of Series B Preferred Shares, July 7, 2010                                  116,715       116,715 
Common shares issued for conversion of Series B Preferred Shares at $1.30 per share, July 21, 2010                          463,177   463           463 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, July 21, 2010          (60,000)  (60)                          (60)
Dividend paid to Seaside 88, LP, July 21, 2010                                  (7,671)      (7,671)
Common shares issued as dividend to Seaside 88, LP at $1.32 per share, July 21, 2010                          5,794   6   7,665       7,671 
Derivative liability - retirement of Series B Preferred Shares, July 21, 2010                                  113,700       113,700 
Common shares issued for consulting and legal services valued at $2.087 per share, July 31, 2010                          3,086   3   4,997       5,000 
Common shares issued for conversion of Series B Preferred Shares at $1.14 per share, August 4, 2010                          526,916   527           527 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 4, 2010          (60,000)  (60)                          (60)
Dividend paid to Seaside 88, LP, August 4, 2010                                  (5,370)      (5,370)
Common shares issued as dividend to Seaside 88, LP, at $1.14 per share, August 4, 2010                          4,716   5   5,365       5,370 
Derivative liability - retirement of Series B Preferred Shares, August 4, 2010                                  104,480       104,480 
Warrants issued to Scientific Advisory Board, August 15, 2010                                  45,000       45,000 
Common shares issued in conversion of Series B Preferred Shares at $0.99 per share, August 18, 2010                          606,367   606           606 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 18, 2010          (60,000)  (60)                          (60)
Dividend paid to Seaside 88, LP, August 18, 2010                                  (3,068)      (3,068)
Common shares issued as dividend to Seaside 88, LP at $0.99 per share, August 18, 2010                          3,101   3   3,065       3,068 
Derivative liability - retirement of Series B Preferred Shares, August 18, 2010                                  104,795       104,795 
Common shares issued for consulting and legal services valued at $1.24 per share, August 31, 2010                          4,032   4   4,996       5,000 
Common shares issued for conversion of Series B Preferred Shares at $0.93 per share, September 1, 2010                          215,332   215           215 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, September 1, 2010          (20,000)  (20)                          (20)
Dividend paid to Seaside 88, LP, September 1, 2010                                  (767)      (767)
Common shares issued as dividend to Seaside 88, LP at $1.00 per share, September 1, 2010                          766   1   766       767 
Derivative liability - retirement of Series B Preferred Shares, September 1, 2010                                  34,841       34,841 
Series B Preferred Shares issued to SeaSide 88, LP,  September 21, 2010          250,000   250                   2,499,750       2,500,000 
Placement Agents fees related to sale of Convertible Preferred shares, September 21, 2010                                  (195,000)      (195,000)
Legal fees related to sale of Convertible Preferred Stock, September 21, 2010                                  (10,000)      (10,000)
Derivative liability - issuance of Series B Preferred Shares                                  (328,086)      (328,086)
Common shares issued for conversion of Series B Preferred Shares at $0.93 per share, September 21, 2010                          430,015   430           430 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, September 21, 2010          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, September 21, 2010                                  103,012       103,012 
Common shares issued for consulting and legal services valued at $1.07 per share, September 30, 2010                          4,673   5   4,995       5,000 
Common shares issued for conversion of Series B Preferred Shares at $0.87 per share, October 5, 2010                          460,346   460           460 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, October 5, 2010          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, on October 5, 2010                                  (8,055)      (8,055)
Common shares issued as dividend to Seaside 88, LP at $0.87 per share, October 5, 2010                          9,268   9   8,046       8,055 
Derivative liability - Retirement of Series B Preferred Shares, October 5, 2010                                  103,330       103,330 
Common shares issued for conversion of Series B Preferred Shares at $0.88 per share, October 19, 2010                          452,965   453           453 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, October 19, 2010          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, October 19, 2010                                  (6,521)      (6,521)
Common shares issued as dividend to Seaside 88, LP at $0.88 per share, October 19, 2010                          7,384   7   6,514       6,521 
Derivative liability - Retirement of Series B Preferred Shares, October 19, 2010                                  69,635       69,635 
Common shares issued for consulting and legal services valued at $1.03 per share, October 31, 2010                          4,854   5   4,995       5,000 
Series A Preferred Shares issued for employee stock compensation, November 1, 2010  30,000   30                           53,903       53,933 
Common shares issued for conversion of Series B Preferred Shares at $0.87 per share, November 2, 2010                          461,313   461           461 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 4, 2010          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, November 2, 2010                                  (4,986)      (4,986)
Common shares issued as dividend to Seaside 88, LP at $0.87 per share, November 2, 2010                          5,751   6   4,980       4,986 
Derivative liability - retirement of Series B Preferred Shares, November 2, 2010                                  69,104       69,104 
Warrants issued to Scientific Advisory Board, November 15, 2010                                  55,800       55,800 
Common shares issued for conversion of Series B Preferred Shares at $1.16 per share, November 16, 2010                          345,817   346           346 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, November 16, 2010          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, November 16, 2010                                  (3,452)      (3,452)
Common shares issued as dividend to Seaside 88, LP at $1.16 per share, November 16, 2010                          2,984   3   3,449       3,452 
Derivative liability - Retirement of Series B Preferred Shares, November 16, 2010                                  69,187       69,187 
Common shares issued for conversion of Series B Preferred Shares at $1.35 per share, November 30, 2010                          310,566   311           311 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, November 30, 2010          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, November 30, 2010                                  (1,918)      (1,918)
Common shares issued as dividend to Seaside 88, LP at $1.35 per share, November 30, 2010                          1,417   1   1,917       1,918 
Derivative liability - Retirement of Series B Preferred Shares, November 30, 2010                                  69,449       69,449 
Common shares issued for consulting and legal services valued at $1.46 per share, November 30, 2010                          3,425   3   4,997       5,000 
Common shares issued for conversion of warrants to Common Stock at $1.00 per share, December 10, 2010                          25,000   25   24,975       25,000 
Common shares issued as compensation pursuant to S-8 at $1.28 per share, December 10, 2010                          50,000   50   63,950       64,000 
Common shares issued for conversion of Series B Preferred Shares at $1.10 per share, December 14, 2010                          90,840   91           91 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, December 14, 2010          (10,000)  (10)                          (10)
Dividend paid to Seaside 88, LP, December 14 2010                                  (384)      (384)
Common shares issued as Dividend to Seaside 88, LP, at $1.10 per share, December 14, 2010                          348   -   384       384 
Derivative liability - retirement of Series B Preferred Shares, December 14, 2010                                  17,438       17,438 
Series B Preferred Shares issued to SeaSide 88, LP, December 21, 2010          250,000   250                   2,499,750       2,500,000 
Placement Agents fees related to sale of Convertible Preferred shares, December 21, 2010                                  (200,000)      (200,000)
Common shares issued for consulting and legal services valued at $1.32 per share, December 31, 2010                          4,545   5   5,995       6,000 
Adjustment                              33           33 
Common shares issued for conversion of Series B Preferred Shares at $1.16 per share, January 3, 2011                          343,796   344           344 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, January 3, 2011          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, January 3, 2011                                  (8,904)      (8,904)
Common shares issued as dividend to Seaside 88, LP at $1.16 per share, January 3, 2011                          7,653   8   8,896       8,904 
Derivative liability - retirement of Series B Preferred Shares, January 3, 2011                                  73,532       73,532 
Common shares issued for conversion of Series B Preferred Shares at $1.26 per share, January 17, 2011                          317,965   318           318 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, January 17, 2011          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, January 17, 2011                                  (8,055)      (8,055)
Common shares issued as dividend to Seaside 88, LP at $1.26 per share, January 17, 2011                          6,403   6   8,049       8,055 
Derivative liability - retirement of Series B Preferred Shares, January 17, 2011                                  70,882       70,882 
Common shares issued for conversion of Series B Preferred Shares at $1.12 per share, January 31, 2011                          356,422   356           356 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, January 31, 2011          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, January 31, 2011                                  (6,521)      (6,521)
Common shares issued as dividend to Seaside 88, LP at $1.24 per share, January 31, 2011                          5,271   5   6,516       6,521 
Derivative liability - retirement of Series B Preferred Shares, January 31, 2011                                  72,432       72,432 
Common shares issued for consulting and legal services valued at $1.47 per share, January 31, 2011                          4,087   4   5,996       6,000 
Common shares issued for conversion of warrants at $1.00 per share, February 4, 2011                          25,000   25   24,975       25,000 
Common shares issued for conversion of Series B Preferred Shares at $1.08 per share, February 14, 2011                          370,017   370           370 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, February 14, 2011          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, February 14, 2011                                  (4,986)      (4,986)
Common shares issued as dividend to Seaside 88, LP, at $1.08 per share, February 14, 2011                          4,613   5   4,981       4,986 
Derivative liability - retirement of Series B Preferred Shares, February 14, 2011                                  71,699       71,699 
Warrants issued to Scientific Advisory Board, Feburary 15, 2011                                  54,000       54,000 
Common shares issued for conversion of Series B Preferred Shares at $0.99 per share, February 28, 2011                          405,610   406           406 
Derivative liability - retirement of Series B Preferred Shares, February 28, 2011                                  71,490       71,490 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, February 28, 2011          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, February 28, 2011                                  (3,452)      (3,452)
Common shares issued as dividend to Seaside 88, LP at $0.99 per shares, February 28, 2011                          3,500   4   3,448       3,452 
Common shares issued for consulting and legal services valued at $1.22 per share, February 28, 2011                          4,902   5   5,995       6,000 
Common shares issued for employee stock compensation  at $1.32 per share, March 3, 2011                          250,000   250   316,000       316,250 
Series A Preferred Shares issued for employee stock compensation, March 3, 2011  593,750   594                           1,364,036       1,364,630 
Common shares issued for conversion of Series B Preferred Shares at $1.09 per share, March 14, 2011                          367,274   367           367 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, March 14, 2011          (40,000)  (40)                          (40)
Dividend paid to Seaside 88, LP, March 14, 2011                                  (1,918)      (1,918)
Common shares issued as Dividend to Seaside 88, LP at $1.09 per shares, March 14, 2011                          1,761   2   1,916       1,918 
Derivative Liability - Retirement of Series B Preferred Shares, March 14, 2011                                  70,566       70,566 
Common shares issued for conversion of Series B Preferred Shares at $1.11 per share, March 28, 2011                          89,986   90           90 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, March 28, 2011          (10,000)  (10)                          (10)
Dividend paid to Seaside 88, LP, March 28, 2011                                  (384)      (384)
Common shares issued as dividend to Seaside 88, LP, at $1.11 per share, March 28, 2011                          345   -   384       384 
Derivative liability - retirement of Series B Preferred Shares, March 28, 2011                                  17,525       17,525 
Common shares issued for consulting and legal services valued at $1.28 per share, March 31, 2011                          4,680   5   5,995       6,000 
Common shares issued for conversion of warrants to common stock at $1.00 per share, April 10, 2011                          10,000   10   9,990       10,000 
Series B Preferred Shares issued to SeaSide 88, LP, April 18, 2011          250,000   250                   2,499,750       2,500,000 
Placement Agents fees related to sale of Convertible Preferred shares, April 18, 2011                                  (160,000)      (160,000)
Legal  fees related to Sale of Convertible Preferred Stock, April 18, 2011                                  (25,000)      (25,000)
Derivative liability - issuance of Series B Preferred Shares                                  (429,725)      (429,725)
Common shares issued for conversion of Series B Preferred Shares at $1.28 per share, April 18, 2011                          312,163   312   (272)      40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, April 18, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, April 18, 2011                                  68,756       68,756 
Common shares issued for consulting and legal services valued at $1.47 per share, April 30, 2011                          4,087   4   5,996       6,000 
Common shares issued for conversion of Series B Preferred Shares at $1.18 per share, May 2, 2011                          339,726   340   (300)      40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, May 2, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, May 2, 2011                                  68,941       68,941 
Dividend paid to Seaside 88, LP, May 2, 2011                                  (8,055)      (8,055)
Common shares issued as dividend to Seaside 88, LP at $1.18 per shares, May 2, 2011                          6,841   7   8,048       8,055 
Warrants issued to Scientific Advisory Board, May 15, 2011                                  50,400       50,400 
Common shares issued for conversion of Series B Preferred Shares at $1.19 per share, May 16, 2011                          336,501   337   (297)      40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, May 16, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, May 16, 2011                                  69,194       69,194 
Dividend paid to Seaside 88, LP, May 16, 2011                                  (6,521)      (6,521)
Common shares issued as dividend to Seaside 88, LP at $1.20 per shares, May 16, 2011                          5,438   5   6,516       6,521 
Common shares issued for conversion of Series B Preferred Shares at $1.23 per share, May 30, 2011                          326,480   326   (286)      40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, May 30, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, May 30, 2011                                  69,464       69,464 
Dividend paid to Seaside 88, LP, May 30, 2011                                  (4,986)      (4,986)
Common shares issued as Dividend to Seaside 88, LP at $1.23 per share, May 30, 2011                          4,070   4   4,982       4,986 
Common shares issued for consulting and legal services valued at $1.47 per share, May 31, 2011                          4,087   4   5,996       6,000 
Common shares issued for conversion of Series B Preferred Shares at $1.18 per share, June 13, 2011                          339,971   340   (300)      40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, June 13, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, June 13, 2011                                  69,727       69,727 
Dividend paid to Seaside 88, LP, June 13, 2011                                  (3,452)      (3,452)
Common shares issued as Dividend to Seaside 88, LP at $1.18 per share, June 13, 2011                          2,934   3   3,449       3,452 
Common shares issued for conversion of Series B Preferred Shares at $1.02 per share, June 27, 2011                          391,850   392   (352)      40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, June 27, 2011          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Series B Preferred Share, June 27, 2011                                  69,973       69,973 
Dividend paid to Seaside 88, LP, June 27, 2011                                  (1,918)      (1,918)
Common shares issued as Dividend to Seaside 88, LP at $1.10 per share, June 27, 2011                          1,741   2   1,916       1,918 
Common shares issued for consulting and legal services valued at $1.22 per share, June 30, 2011                          4,902   5   5,995       6,000 
                                             
Net loss                                      (6,477,165)  (6,477,165)
                                             
Balance, June 30, 2011  8,217,500   8,218   10,000   10   -   -   143,548,494   143,582   33,235,990   (23,216,908)  10,170,891 
                                             
Common shares issued for conversion of Series B Preferred Shares at $1.11 per share, July 11, 2011                          89,986   90           90 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, July 11, 2011          (10,000)  (10)                          (10)
Derivative liability - retirement of Series B Preferred Shares, July 11, 2011                                  17,881       17,881 
Dividend to Seaside 88, LP, paid on July 11, 2011                                  (381)      (381)
Common shares issued as dividend to Seaside 88, LP at $1.18 per share, July 11, 2011                          345   -   381       381 
Series B Preferred Shares issued to SeaSide 88, LP, on July 26, 2011          250,000   250                   2,499,750       2,500,000 
Placement Agents fees related to sale of Convertible Preferred shares, July 26, 2011                                  (150,000)      (150,000)
Derivative liability - issuance of Series B Preferred Shares                                  (429,768)      (429,768)
Legal  Fees related to Sale of Convertible Preferred Stock, July 26, 2011                                  (6,250)      (6,250)
Common shares issued in conversion of Series B Preferred Shares to common stock at $1.18 per share, July 26, 2011                          377,800   378           378 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, July 26, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, July 26, 2011                                  68,425       68,425 
Common shares issued for consulting and legal services valued at $1.26 per share, July 31, 2011                          4,762   5   5,995       6,000 
Warrants issued to Scientific Advisory Board, August 15, 2011                                  56,400       56,400 
Common shares issued for conversion of Series B Preferred Shares at $0.92 per share, August 8, 2011                          437,187   437           437 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 8, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, August 8, 2011                                  69,193       69,193 
Dividend to Seaside 88, LP, paid on August 8, 2011                                  (8,055)      (8,055)
Common shares issued as Dividend to Seaside 88, LP at $0.98 per share, August 8, 2011                          8,205   8   8,047       8,055 
Common shares issued for conversion of Series B Preferred Shares at $0.95 per share, August 23, 2011                          419,829   420           420 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 23, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, August 23, 2011                                  69,351       69,351 
Dividend paid to Seaside 88, LP, August 23, 2011                                  (6,521)      (6,521)
Common shares issued as Dividend to Seaside 88, LP at $0.95 per share, August 23, 2011                          6,844   7   6,514       6,521 
Common shares issued for consulting and legal services valued at $1.14 per share, August 31, 2011                          5,263   5   5,995       6,000 
Common shares issued for conversion of Series B Preferred Shares at $0.95 per share, September 6, 2011                          422,873   423           423 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, September 6, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Shares, September 6, 2011                                  69,887       69,887 
Dividend paid to Seaside 88, LP, September 6, 2011                                  (4,986)      (4,986)
Common shares issued as Dividend to Seaside 88, LP at $0.95 per share, September 6, 2011                          5,264   5   4,981       4,986 
Common shares issued in conversion of Series B Preferred Shares at $0.94 per share, September 19, 2011                          427,652   428           428 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, September 19, 2011          (40,000)  (40)                          (40)
Derivative liability - retirement of Series B Preferred Share, September 19, 2011                                  69,970       69,970 
Dividend to Seaside 88, LP, paid on September 19, 2011                                  (3,452)      (3,452)
Common shares issued as Dividend to Seaside 88, LP at $0.94 per share, September 19, 2011                          3,691   3   3,449       3,452 
Common shares issued for consulting and legal services valued at $1.07 per share, September 30, 2011                          5,607   6   5,994       6,000 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $.78 per share, .001 par value, on October 3, 2011                          514,311   514           514 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on October 3, 2011          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on October 3, 2011                                  69,496       69,496 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.85 on October 3, 2011                          2,270   2   1,916       1,918 
Dividend to Seaside 88, LP, paid on October 3, 2011                                  (1,918)      (1,918)
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.69 per share, .001 par value, on October 17, 2011                          144,484   144           144 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on October 17, 2011          (10,000)  (10)                          (10)
Derivative Liability - Retirement of Preferred Series B on October 17, 2011                                  17,790       17,790 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.75 on October 17, 2011                          510   1   383       384 
Dividend to Seaside 88, LP, paid on October 17, 2011                                  (384)      (384)
Shares issued for consulting and legal services rendered at $0..92 per share on October 31, 2011                          6,537   5   5,995       6,000 
Series B Preferred Shares issued to SeaSide 88, LP, $.001 par value on November 1, 2011          250,000   250                   2,499,750       2,500,000 
Placement Agents Fees related to sale of Convertible Preferred shares on November 1, 2011                                  (160,000)      (160,000)
Derivative Liability - Issuance of Preferred Series B                                  (429,804)      (429,804)
Legal  Fees related to Sale of Convertible Preferred Stock November 1, 2011                                  (25,000)      (25,000)
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.78 per share, .001 par value, on November 1, 2011                          511,787   512           512 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on November 2, 2011          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on November 1, 2011                                  68,297       68,297 
Warrants issued to Scientific Advisory Board on November 15, 2011                                  56,400       56,400 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.69 per share, .001 par value, on November 15, 2011                          578,595   579           579 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on November  15, 2011          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on November 15, 2011                                  68,411       68,411 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0..73 on November 15, 2011                          10,311   10   7,469       7,479 
Dividend to Seaside 88, LP, paid on November 15, 2011                                  (7,479)      (7,479)
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.62 per share, .001 par value, on November 29, 2011                          642,735   643           643 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on November  29, 2011          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on November 29, 2011                                  68,591       68,591 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.64 on November 29, 2011                          10,139   10   6,511       6,521 
Dividend to Seaside 88, LP, paid on November 29, 2011                                  (6,521)      (6,521)
Shares issued for consulting and legal services rendered at $0.81 per share on November 30, 2011                          7,373   7   5,993       6,000 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.53 per share, .001 par value, on December 13, 2011                          751,315   751           751 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on December 13, 2011          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on December 13, 2011                                  68,753       68,753 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.57 on December 13, 2011                          8,798   9   4,977       4,986 
Dividend to Seaside 88, LP, paid on December 13, 2011                                  (4,986)      (4,986)
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.51 per share, .001 par value, on December 27, 2011                          796,785   798           798 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on December 27, 2011          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on December 27, 2011                                  68,965       68,965 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.57 on December 27, 2011                          6,818   7   3,443       3,450 
Dividend to Seaside 88, LP, paid on December 27, 2011                                  (3,452)      (3,452)
Shares issued for consulting and legal services rendered at $0.64 per share on December 31, 2011                          9,403   9   5,991       6,000 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $.51 per share, .001 par value, on January 10, 2012                          788,053   788           788 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on January 10,2012          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on January 10, 2012                                  69,222       69,222 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.51 on January 10, 2012                          3,742   4   1,914       1,918 
Dividend to Seaside 88, LP, paid on January 10, 2012                                  (1,918)      (1,918)
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.48 per share, .001 par value, on January 24, 2012                          208,546   209           209 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on January 24, 2012          (10,000)  (10)                          (10)
Derivative Liability - Retirement of Preferred Series B on January 24, 2012                                  69,883       69,883 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.49 on January 24, 2012                          786       383       384 
Dividend to Seaside 88, LP, paid on January 24, 2012                                  (384)      (384)
Shares issued for consulting and legal services rendered at $0.58 per share on January 31, 2012                          10,367   10   5,990       6,000 
Series B Preferred Shares issued to SeaSide 88, LP,  $.001 par value on February 8, 2012          250,000   250                   2,499,750       2,500,000 
Placement Agents Fees related to sale of Convertible Preferred shares on February 8, 2012                                  (150,000)      (150,000)
Derivative Liability - Issuance of Preferred Series B                                  (430,283)      (430,283)
Legal  Fees related to Sale of Convertible Preferred Stock February 8, 2012                                  (6,250)      (6,250)
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.56 per share, .001 par value, on February 8, 2012                          717,142   717           717 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on  February 8, 2012          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on  February 8, 2012                                  68,169       68,169 
Warrants issued to Scientific Advisory Board on February 15, 2012                                  51,000       51,000 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.69 per share, .001 par value, on  February 22, 2012                          576,062   576           576 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on February 22, 2012          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on February 22, 2012                                  68,424       68,423 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.69 on February 22, 2012                          11,600   12   7,467       7,479 
Dividend to Seaside 88, LP, paid on February 22, 2012                                  (7,479)      (7,479)
Shares issued for consulting and legal services rendered at $0.77 per share on February 29, 2012                          7,767   8   5,992       6,000 
Common shares issued for employee stock compensation  at $.73 per share, March 3, 2012                          250,000   250   181,624       181,874 
Series A Preferred Shares issued for employee stock compensation, March 3, 2012  593,750   594                           633,814       634,408 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.64 per share, .001 par value, on March 07, 2012                          628,289   628           628 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on March 7, 2012          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on  March 7, 2012                                  68,602       68,602 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.64 on March 7, 2012                          10,242   10   6,511       6,521 
Dividend to Seaside 88, LP, paid on March 7, 2012                                  (6,521)      (6,521)
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.63 per share, .001 par value, on March 21, 2012                          635,991   636           636 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on March  21, 2012          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on March 21, 2012                                  68,862       68,862 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.64 on March 21, 2012                          7,812   8   4,978       4,986 
Dividend to Seaside 88, LP, paid on March 21, 2012                                  (4,986)      (4,986)
Shares issued for consulting and legal services rendered at $0.78 per share on March 31, 2012                          7,728   8   5,992       6,000 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $.61 per share, .001 par value, on April 4, 2012                          661,496   661           661 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on April 4, 2012          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on April 4, 2012                                  69,098       69,098 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.61 on April 4, 2012                          5,709   6   3,446       3,452 
Dividend to Seaside 88, LP, paid on April 4, 2012                                  (3,452)      (3,452)
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.51 per share, .001 par value, on April 18, 2012                          785,453   785           785 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on April 18, 2012          (40,000)  (40)                          (40)
Derivative Liability - Retirement of Preferred Series B on April 18, 2012                                  69,224       69,224 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.54 on April 18, 2012                          3,579   4   1,914       1,918 
Dividend to Seaside 88, LP, paid on April 18, 2012                                  (1,918)      (1,918)
Shares issued for consulting and legal services rendered at $0.63 per share on April 30, 2012                          9,547   9   5,990       5,999 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $0.50 per share, .001 par value, on May 2, 2012                          198,354   199           199 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on  May 2, 2012          (10,000)  (10)                          (10)
Derivative Liability - Retirement of Preferred Series B on  May 2, 2012                                  69,892       69,892 
Warrants issued to Scientific Advisory Board on May 15, 2012                                  47,400       47,400 
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.51 on May 2, 2012                          754   1   383       384 
Dividend to Seaside 88, LP, paid on May 2, 2012                                  (384)      (384)
Shares issued for consulting and legal services rendered at $0.67 per share on May 31, 2012                          8,962   9   5,991       6,000 
Series C Preferred Shares issued to SeaSide 88, LP,  $.001 par value on June 28, 2012                  2,500   3           2,499,997       2,500,000 
Placement Agents Fees related to sale of Convertible Preferred shares on June 28, 2012                                  (150,000)      (150,000)
Derivative Liability - Issuance of Preferred Series C                                  (1,090,017)      (1,090,017)
Legal  Fees related to Sale of Convertible Preferred Stock June 28, 2012                                  (25,000)      (25,000)
Sharees of Series A Preferred issued for legal services rendered  10,000   10                           3,277       3,287 
Shares issued in conversion of Series C Preferred Shares to Common Stock at $0.49 per share, .001 par value, on June 28, 2012                          298,472   298           298 
Retirement of Series C Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on June 28, 2012                  (147)  -                   - 
Derivative Liability - Retirement of Preferred Series C on June 28, 2012                                  63,704       63,704 
Series A Preferred Shares issued for employee stock compensation, June 28, 2012  1,050,000   1,050                           344,122       345,172 
Shares issued for consulting and legal services rendered at $0.61 per share on June 30, 2012                          9,867   10   5,990       6,000 
                                             
Net loss for the year ended June 30, 2012                                      (6,207,207)  (6,207,207)
                                             
                                             
Balance, June 30, 2012  9,871,250   9,872   -   -   2,353   3   155,612,293   155,644   43,108,790   (29,424,116)  13,850,193 
                                             
Shares issued in conversion of Series C Preferred Shares to Common Stock at $.49 per share, .001 par value, on July 12, 2012                          212,398   212           212 
                                             
Retirement of Series C Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on July 12, 2012                  (103)  (0)                    
                                             
Derivative Liability - Retirement of Preferred Series C on July 12, 2012                                  44,190       44,190 
                                             
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.49 on JULY 12, 2012                          18,397   18   9,008       9,026 
                                             
Dividend to Seaside 88, LP, paid on July 12, 2012                                  (9,026)      (9,026)
                                             
Shares issued in conversion of Series C Preferred Shares to Common Stock at $0.47 per share, .001 par value, on July 26, 2012                          271,373   271           271 
                                             
Retirement of Series C Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on July 26, 2012                  (128)  (0)                    
                                             
Derivative Liability - Retirement of Preferred Series B on July 26, 2012                                  53,032       53,032 
                                             
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.47 on July 26, 2012                          18,275   18   8,611       8,629 
                                             
Dividend to Seaside 88, LP, paid on July 26, 2012                                  (8,629)      (8,629)
                                             
Shares issued for consulting and legal services rendered at $0.55 per share on July 31, 2012                          10,909   11   5,989       6,000 
                                             
Shares issued in conversion of Series C Preferred Shares to Common Stock at $0.42 per share, .001 par value, on August 8, 2012                          280,944   281           281 
                                             
Retirement of Series C Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on  August 8, 2012                  (118)  (0)                    
                                             
Derivative Liability - Retirement of Preferred Series C on August 8, 2012                                  51,555       51,555 
                                             
Warrants issued to Scientific Advisory Board on August 15, 2012                                  40,800       40,800 
                                             
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.43 on August 8, 2012                          18,868   19   8,119       8,138 
                                             
Dividend to Seaside 88, LP, paid on August 8, 2012                                  (8,138)      (8,138)
                                             
Shares issued in conversion of Series C Preferred Shares to Common Stock at $0.48 per share, .001 par value, on August 23, 2012                          574,792   575           575 
                                             
Retirement of Series C Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on August 23, 2012                  (276)  (0)                    
                                             
Derivative Liability - Retirement of Preferred Series C on August 23, 2012                                  121,054       121,054 
                                             
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.43 on August 23, 2012                          16,006   16   7,668       7,684 
                                             
Dividend to Seaside 88, LP, paid on August 23, 2012                                  (7,684)      (7,684)
                                             
Shares issued for consulting and legal services rendered at $0.58 per share on August 31, 2012                          10,345   10   5,990       6,000 
                                             
Shares issued in conversion of Series C Preferred Shares to Common Stock at $0.58 per share, .001 par value, on September 5, 2012                          763,135   763           763 
                                             
Retirement of Series C Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on September 5, 2012                  (441)  (0)                  (0)
                                             
Derivative Liability - Retirement of Preferred Series C on September 5, 2012                                  236,481       236,481 
                                             
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.58 on September 5, 2012                          11,478   11   6,614       6,625 
                                             
Dividend to Seaside 88, LP, paid on September 5, 2012                                  (6,625)      (6,625)
                                             
Shares issued in conversion of Series C Preferred Shares to Common Stock at $0.52 per share, .001 par value, on September 19, 2012                          553,337   553           553 
                                             
Retirement of Series C Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on September 19, 2012                  (285)  (0)                    
                                             
Derivative Liability - Retirement of Preferred Series C on September 19, 2012                                  182,575       182,575 
                                             
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.52 on September 19, 2012                          9,572   10   4,926       4,936 
                                             
Dividend to Seaside 88, LP, paid on September 19 2012                                  (4,936)      (4,936)
                                             
Shares issued for consulting and legal services rendered at $0.62 per share on September 30, 2012                          9,677   10   5,990       6,000 
                                             
Shares issued in conversion of Series C Preferred Shares to Common Stock at $.54 per share, .001 par value, on October 3, 2012                          435,842   436           436 
                                             
Retirement of Series C Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on October 3, 2012                  (233)  (0)                    
                                             
Derivative Liability - Retirement of Preferred Series C on October 3, 2012                                  39,945       39,945 
                                             
Shares issued as Dividend to Seaside 88, LP, .001 par value common stock at $0.54 on October 3, 2012                          7,176   7   3,835       3,842 
                                             
Dividend to Seaside 88, LP, paid on October 3, 2012                                  (3,842)      (3,842)
                                             
Shares issued in conversion of Series C Preferred Shares to Common Stock at $0.53 per share, .001 par value, on October 17, 2012                          311,521   312           312