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 March 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 May 15, 2013 was: 161,985,997

 

 

NANOVIRICIDES, INC.

 

(A DEVELOPMENT STAGE COMPANY)

 

March 31, 2013 and 2012

 

Index to the Financial Statements

 

Contents		Page(s)
Balance Sheets at March 31, 2013 (Unaudited) and June 30, 2012		F-3
Statements of Operations for the Three and Nine Months Ended March 31, 2013 and 2012 and for the Period from May 12, 2005 (Inception) through March 31, 2013 (Unaudited)		F-4
Statements of Stockholders’ Equity for the Period from June 30, 2010 through March 31, 2013 (Unaudited)		F-5
Statements of Cash Flows for the Nine Months Ended March 31, 2013 and 2012 and for the Period from May 12, 2005 (Inception) through March 31, 2013 (Unaudited)		F-6
Notes to the Financial Statements (Unaudited)		F-7

 

 

Nanoviricides, Inc.

 

(A Development Stage Company)

Balance Sheets

 

		March 31, 2013				June 30, 2012
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	15,457,807			$	14,274,985
Prepaid expenses			541,634				314,174
Collateral advance for affiliate			1,000,000				-
Total Current Assets			16,999,441				14,589,159
PROPERTY AND EQUIPMENT
Property and equipment			1,440,717				1,440,717
Accumulated depreciation			(984,033	)			(825,875	)
Property and equipment, net			456,684				614,842
TRADEMARK
Trademark			458,954				458,954
Accumulated amortization			(39,727	)			(33,147	)
Trademark, net			419,227				425,807
Total Assets		$	17,875,352			$	15,629,808
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	237,661			$	238,358
Accounts payable – related parties			630,385				365,681
Accrued expenses			147,246				96,878
Derivative liability			3,398,611				1,078,698
Total Current Liabilities			4,413,903				1,779,615
LONG TERM LIABILITIES:
Debentures payable			3,339,067				-
Total Long Term Liabilities			3,339,067				-
Total Liabilities			7,752,970				1,779,615
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Series A Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 10,465,000 and 9,871,250 shares issued and outstanding, respectively			10,466				9,872
Series B Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, none issued and outstanding			-				-
Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 0 and 2,353 shares issued and outstanding, respectively			-				2
Common stock, $0.001 par value; 300,000,000 shares authorized; 164,540,249 and 155,612,293 shares issued and outstanding, respectively			164,571				155,645
Additional paid-in capital			46,066,390				43,108,790
Deficit accumulated during the development stage			(36,119,045	)			(29,424,116	)
Total Stockholders' Equity			10,122,382				13,850,193
Total Liabilities and Stockholders' Equity		$	17,875,352			$	15,629,808

 

See accompanying notes to the financial statements

 

 

Nanoviricides, Inc.

 

(A Development Stage Company)

Statements of Operations

 

																		For the Period from
		For the Three Months				For the Three Months				For the Nine Months				For the Nine Months				May 12, 2005
		Ended				Ended				Ended				Ended				(inception) through
		March 31, 2013				March 31, 2012				March 31, 2013				March 31, 2012				March 31, 2013
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
OPERATING EXPENSES
Research and development		$	1,359,205			$	1,582,705			$	3,279,220			$	3,252,745			$	21,790,371
Refund credit research and development costs			-				-				-				-				(420,842	)
General and administrative			831,353				494,080				1,748,582				1,281,755				12,465,960
Total operating expenses			2,190,558				2,076,785				5,027,802				4,534,500				33,835,489
LOSS FROM OPERATIONS			(2,190,558	)			(2,076,785	)			(5,027,802	)			(4,534,500	)			(33,835,489	)
OTHER INCOME (EXPENSE):
Interest income (expense), net			(822,278	)			30,801				(770,825	)			40,283				(558,714	)
Discount on convertible debentures			-				-				-				-				(73,930	)
Beneficial conversion feature of convertible debentures			-				-				-				-				(713,079	)
Change in fair market value of derivatives			(669,753	)			14,131				(896,302	)			(68,931	)			(937,833	)
Other income (expense), net			(1,492,031	)			44,932				(1,667,127	)			(28,648	)			(2,283,556	)
LOSS BEFORE INCOME TAX PROVISION			(3,682,589	)			(2,031,853	)			(6,694,929	)			(4,563,148	)			(36,119,045	)
INCOME TAX PROVISION			-				-				-				-				-
NET LOSS		$	(3,682,589	)		$	(2,031,853	)		$	(6,694,929	)			(4,563,148	)		$	(36,119,045	)
NET LOSS PER COMMON SHARE
- BASIC AND DILUTED:		$	(0.02	)		$	(0.01	)		$	(0.04	)			(0.02	)
Weighted average common shares outstanding
- basic and diluted			163,454,938				151,556,920				159,902,326				147,890,395

 

See accompanying notes to the financial statements

 

 

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 fisacal 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 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											(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