RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Tables)

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

Impact of the restatement

As reported				Adjustment			As restated
Balance sheet data — December 31, 2012
Cash	$	50,679		$	(16,840	)	$	33,839
Total Assets		104,212			(16,840	)		87,372
Accounts payable and accrued liabilities		2,058,556			(116,840	)		1,941,716
Derivative liability – conversion option		798,300			69,275			867,575
Derivative liability - warrants		677,086			300,000			977,086
Convertible notes payable		1,376,230			100,000			1,476,230
Due to related parties		366,697			6,649			373,346
Total liabilities		5,770,809			359,084			6,129,893
Additional paid-in capital		43,545,947			(62,000	)		43,483,947
Deficit accumulated during the development stage		(49,580,159	)		(313,924	)		(49,894,083	)
Stockholders’ deficiency	$	(5,666,597	)	$	(375,924	)	$	(6,042,521	)

impact of the restatement1

As reported				Adjustment			As restated
Consolidated Statement of Operations data For the year ended December 31, 2012
Management fees	$	295,600		$	6,649		$	302,249
Net Loss Before Other Items		(6,222,798	)		(6,649	)		(6,229,447	)
Changes in fair value of derivative liabilities		536,527			(307,375	)		229,252
NET LOSS	$	(5,857,943	)	$	(313,924	)	$	(6,171,867	)

impact of the restatement2

As reported				Adjustment			As restated
Consolidated Statement of Operations data From July 27, 1999 (inception) to December 31, 2012
Management fees	$	3,067,654		$	6,649		$	3,074,303
Net Loss Before Other Items		(41,491,894	)		(6,649	)		(41,498,543	)
Changes in fair value of derivative liabilities		4,611,667			(307,375	)		4,304,392
NET LOSS	$	(49,580,159	)	$	(313,924	)	$	(49,894,083	)