Common Stock

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

9. Common Stock

The following table reconciles the number of Common Stock and Series B Convertible Preferred Stocks as to the date of this report.

Date		B Series Preferred Stocks		Common Stocks
December 31, 2011	Issued and outstanding	1,456,647		25,690,402
May 17, 2012	Conversion of shares of Series B Preferred Stock into shares of Common Stock	(405,000	)	270,000
July 27, 2012 (1)	Conversion of shares of Series B Preferred Stock into shares of Common Stock	(410,000	)	273,333
Date of this report	Issued and outstanding	641,647	(2)	26,233,735

(1)   Please refer to Note 10 “Subsequent Event.”

(2)   As of the date of this report, the outstanding Series B Preferred Convertible Stocks was 641,647, which can be converted into 427,765 shares of Common Stocks. Assuming all shares of Series B Convertible Preferred Stock are converted, the total number of shares of Common Stock to be issued and outstanding will be 26,661,500.

As of June 30, 2012, the Company had outstanding warrants to purchase 175,000 shares of the Company’s Common Stock.