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 September 30, 2012

 

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 November 19, 2012 was: 158,391,699.

 

 

NanoViricides, Inc.

FORM 10-Q

INDEX

 

PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets at September 30, 2012 (Unaudited) and June 30, 2012	3
Statements of Operations for the Three Months Ended September 30, 2012 and 2011 and for the Period from May 12, 2005 (Inception) through September 30, 2012 (Unaudited)	4
Statements of Cash Flows for the Three Months Ended September 30, 2012 and 2011 and for the Period from May 12, 2005 (Inception) through September 30, 2012 (Unaudited)	5
Statement of Stockholders’ Equity	7
Notes to the Financial Statements (Unaudited)	8
Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.   Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.   Controls and Procedures	28
PART II OTHER INFORMATION
Item 1.   Legal Proceedings	30
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.   Defaults Upon Senior Securities	31
Item 4.   Mine Safety Disclosures	31
Item 5.   Other Information	31
Item 6.   Exhibits and Reports on Form 8-K	31
Signatures	31
Certifications

 

 

Nanoviricides, Inc.

 

(A Development Stage Company)

Balance Sheets

 

		September 30, 2012				June 30, 2012
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	12,929,665			$	14,274,985
Prepaid expenses			438,341				314,174
Total Current Assets			13,368,006				14,589,159
PROPERTY AND EQUIPMENT
Property and equipment			1,440,717				1,440,717
Accumulated depreciation			(878,594	)			(825,875	)
Property and equipment, net			562,123				614,842
TRADEMARK
Trademark			458,954				458,954
Accumulated amortization			(35,340	)			(33,147	)
Trademark, net			423,614				425,807
Total Assets		$	14,353,743			$	15,629,808
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	384,367			$	238,358
Accounts payable – related parties			441,111				365,681
Accrued expenses			98,258				96,878
Derivative liability			633,430				1,078,698
Total Current Liabilities			1,557,166				1,779,615
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Series A Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 9,871,250, and 9,871,250 shares issued and outstanding, respectively			9,872				9,872
Series B Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0 shares issued and outstanding			-				-
Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 1,002 and 2,353 shares issued and outstanding, respectively			1				2
Common stock, $0.001 par value; 300,000,000 shares authorized; 158,391,799, and 155,612,293 shares issued and outstanding, respectively			158,422				155,645
Additional paid-in capital			43,856,353				43,108,790
Deficit accumulated during the development stage			(31,228,071	)			(29,424,116	)
Total Stockholders' Equity			12,796,577				13,850,193
Total Liabilities and Stockholders' Equity		$	14,353,743			$	15,629,808

 

See accompanying notes to the financial statements

 

 

Nanoviricides, Inc.

 

(A Development Stage Company)

Statements of Operations

(Unaudited)

 

										For the Period from
		For the 3 Months				For the 3 Months				May 12, 2005
		Ended				Ended				(inception) through
		September 30, 2012				September 30, 2011				September 30, 2012
		(Unaudited)				(Unaudited)				(Unaudited)
OPERATING EXPENSES
Research and development		$	1,209,818			$	691,699			$	19,720,969
Refund credit research and development costs			-				-				(420,842	)
General and administrative			381,167				448,729				11,098,545
Total operating expenses			1,590,985				1,140,428				30,398,672
LOSS FROM OPERATIONS			(1,590,985	)			(1,140,428	)			(30,398,672	)
OTHER INCOME (EXPENSE):
Interest income, net			33,303				8,904				245,414
Discount on convertible debentures			-				-				(73,930	)
Beneficial conversion feature of convertible debentures			-				-				(713,079	)
Change in fair market value of derivatives			(246,273	)			(8,452	)			(287,804	)
Other income (expense), net			(212,970	)			452				(829,399	)
LOSS BEFORE INCOME TAXES			(1,803,955	)			(1,139,976	)			(31,228,071	)
INCOME TAX PROVISION			-				-				-
NET LOSS		$	(1,803,955	)		$	(1,139,976	)		$	(31,228,071	)
NET LOSS PER COMMON SHARE - BASIC AND DILUTED:		$	(0.01	)		$	(0.01	)
Weighted average common shares outstanding - basic and diluted			156,777,106				144,570,447

  

See accompanying notes to the financial statements

 

  

NanoViricides, Inc.

(A Development Stage Company)

Statement of Stockholders' Equity

For the periood June 30, 2009 Through September 30, 2012

 

																																										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				Stock				During the				Total
		Number of								Number of								Number of								Number of								Paid-in				Subscription				Development				Stockholders'
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Capital				Receivable				Stage				Equity
Please refer to Form 10K for the fisacal year ended June 30, 2011 filed with SEC on October 13, 2011 for equity transactions occurred prior to June 30, 2009
Balance, June 30, 2009			-			$	-				-			$	-							$					125,299,457			$	125,299			$	14,455,778			$	(100,000	)		$	(11,995,535	)		$	2,485,542
Collection of stock subscription receivable																																							100,000								100,000
Common shares issued for consulting and legal services valued at $ .66 per share, July 31, 2009																											7,576				8				4,992												5,000
Common shares issued for consulting services valued at $.66 per share, July 31, 2009																											8,485				8				5,592												5,600
Warrants issued to Scientific Advisory Board, August 15, 2009																																			41,400												41,400
Common shares issued for consulting and legal services valued at $ .86 per share, August 31, 2009																											6,512				7				4,993												5,000
Common shares issued for consulting services valued at $.86 per share, August 31, 2009																											5,814				6				5,594												5,600
Common shares issued for consulting services valued at $ .89 per share, September 30, 2009																											6,292				6				5,594												5,600
Common shares issued for consulting and legal services valued at $ .89 per share, September 30, 2009																											5,618				6				4,994												5,000
Payment of Finder's Fee																																			(5,250	)											(5,250	)
Common shares and warrants issued in connection with private placement of common stock, September 30, 2009																											2,675,000				2,675				1,334,825												1,337,500
Common shares and warrants issued in connection with warrant conversion, September 30, 2009																											3,759,800				3,760				1,876,140												1,879,900
Common shares issued for consulting and legal services valued at $ .57 per share, October 1, 2009																											35,088				35				19,965												20,000
Common shares issued for Legal services valued at $56.50 per share, October 26, 2009																											12,500				13				7,050												7,063
Warrants issued for commissions, October 26, 2009																																			3,570												3,570
Common shares issued for consulting and legal services valued at $ .73 per share, October 31, 2009																											6,859				7				4,993												5,000
Common shares issued for consulting services valued at $.73 per share, October 31, 2009																											7,682				8				5,592												5,600
Common shares issued upon conversion of Warrants, November 10, 2009																											10,000				10				1,430												1,440
Warrants issued to Scientific Advisory Board, November 15, 2009																																			39,600												39,600
Common shares issued in payment of accounts payable, November 25, 2009																											32,500				33				25,167												25,200
Common shares issued for consulting and legal services valued at $ .86 per share, November 30, 2009																											5,814				6				4,994												5,000
Common shares issued for consulting services valued at $.86 per share, November 30, 2009																											9,767				10				8,390												8,400
Common shares issued for consulting services valued at $ .85 per share, December 31, 2009																											9,917				10				8,390												8,400
Common shares issued for consulting and legal services valued at $ .85 per share, December 31, 2009																											5,903				6				4,994												5,000
Common shares issued for consulting and legal services valued at $1.043 per share, January 31, 2010																											4,794				5				4,995												5,000
Warrants issued to Scientific Advisory Board, February 15, 2010																																			40,200												40,200
Series A Preferred Shares issued for TheraCour license valued at $.001 par value, February 15, 2010			7,000,000				7,000																																								7,000
Common shares issued for consulting services valued at $1.096 per share, February 28, 2010																											4,562				5				4,995												5,000
Common shares issued for employee stock compensation valued at $1.25 per share, March 3, 2010																											125,000				125				156,125												156,250
Common shares issued for employee stock compensation valued at $1.25 per share, March 3, 2010																											125,000				125				156,125												156,250
Series A Preferred Shares issued for employee stock compensation, March 3, 2010			250,000				250																												513,573												513,823
Series A Preferred Shares issued for employee stock compensation, March 3, 2010			250,000				250																												513,573												513,823
Series A Preferred Shares issued for employee stock compensation, March 3, 2010			93,750				94																												192,590												192,684
Common shares issued for consulting and legal servies valued at $1.25 per share, March 3, 2010																											1,000				1				1,249												1,250
Common shares issued for consulting services valued at $1.417 per share, March 31, 2010																											3,529				4				4,996												5,000
Common shares issued in lieu of payment of accounts payable - All Sciences																											39,625				40				31,660												31,700
Common shares issued for consulting and legal services valued at $2.087 per share, April 30, 2010																											2,396				2				4,998												5,000
Series B Preferred Shares issued to SeaSide 88, LP, May 12, 2010											500,000				500																				4,999,500												5,000,000
Placement Agents Fees related to sale of Convertible Preferred shares, May 12, 2010																																			(400,000	)											(400,000	)
Legal Fees related to Sale of Convertible Preferred Stock, May 12, 2010																																			(50,000	)											(50,000	)
Derivative Liability - Issuance of Series B Preferred Shares																																			(1,787,379	)											(1,787,379	)
Common shares issued for conversion of Series B Preferred Shares at $1.88 per share, May 12, 2010																											319,331				319																319
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, May 12, 2010											(60,000	)			(60	)																															(60	)
Derivative Liability - Retirement of Series B Preferred Shares, May 12, 2010																																			128,053												128,053
Warrants issued to Scientific Advisory Board, May 15, 2010																																			82,800												82,800
Common shares issued for conversion of Series B Preferred Shares at $1.51 per share, May 26, 2010																											398,189				398																398
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, May 26, 2010											(60,000	)			(60	)																															(60	)
Dividend paid to Seaside 88, LP, May 26, 2010																																			(16,877	)											(16,877	)
Common shares issued as Dividend to Seaside 88, LP at $1.64, May 26, 2010																											10,300				10				16,867												16,877
Derivative Liability - Retirement of Series B Preferred Shares, May 26, 2010																																			151,852												151,852
Common shares issued for consulting and legal services valued at $2.083 per share, May 31, 2010																											2,400				2				4,998												5,000
Common shares issued for conversion of warrants to Common Stock at $1.00 per share, June 9, 2010																											195,000				195				194,805												195,000
Common shares issued for conversion of Series B Preferred Shares at $1.41 per share, June 9, 2010																											426,721				427																427
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, June 9, 2010											(60,000	)			(60	)																															(60	)
Dividend paid to Seaside 88, LP, June 9, 2010																																			(14,575	)											(14,575	)
Common shares issued as Dividend to Seaside 88, LP at $1.41, June 9, 2010																											10,366				10				14,565												14,575
Derivative Liability - Retirement of Series B Preferred Shares, June 9, 2010																																			149,364												149,364
Common shares issued for consulting and legal services valued at $1.77 per share, June 9, 2010																											11,300				11				19,989												20,000
Common shares issued for consulting and legal services valued at $1.77 per share, June 9, 2010																											2,000				2				3,538												3,540
Common shares issued for conversion of Series B Preferred Shares at $1.59 per share, June 23, 2010																											377,905				378																378
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, June 23, 2010											(60,000	)			(60	)																															(60	)
Dividend paid to Seaside 88, LP, June 23, 2010																																			(12,274	)											(12,274	)
Common shares issued as Dividend to Seaside 88, LP at $1.59, June 23, 2010																											7,731				7				12,268												12,275
Derivative Liability - Retirement of Series B Preferred Shares, June 23, 2010																																			120,254												120,254
Common shares issued for consulting and legal services valued at $1.043 per share, June 30, 2010																											2,738				2				4,998												5,000
Net loss																																											(4,744,208	)			(4,744,208	)
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 ofSeries 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