QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

NOTE 14 – QUARTERLY FINANCIAL INFORMATION (UNAUDITED) 

LaserLock Technologies, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Balance Sheets

(Unaudited)

	September 30, 2011			June 30, 2011			March 31, 2011			September 30, 2010			June 30, 2010			March 31, 2010
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	128,306		$	244,104		$	21,903		$	5,456		$	5,965		$	4,730
Accounts receivable, net of allowance of $0 at
September 30, 2011, June 30, 2011, March 31, 2011
September 30, 2010, June 30, 2010 and March 31, 2010		-			1,508			1,539			7,044			2,235			245
Inventory		35,137			23,113			23,113			23,686			17,742			17,993
Deferred finance charges		16,875			20,800			24,349			18,699			14,199			14,199
Prepaid Expenses		135,517			135,517			136,122			45,500			-			-
TOTAL CURRENT ASSETS		315,835			425,042			207,026			100,385			40,141			37,167
PROPERTY AND EQUIPMENT
Capital equipment		32,604			32,604			32,604			32,604			32,604			32,604
Less accumulated depreciation		32,604			32,604			32,604			31,895			31,185			30,476
		-			-			-			709			1,419			2,128
OTHER ASSETS
Deferred finance charges		1,063			5,000			9,313			4,125			3,550			7,099
Patent costs, net of accumulated amortization of
$76,093, $73,378, $70,663, $65,253, $62,529 and $59,850 as of
September 30, 2011, June 30, 2011, March 31, 2011
September 30, 2010, June 30, 2010, March 31, 2010		119,239			120,515			123,230			128,639			128,864			131,543
		120,302			125,515			132,543			132,764			132,414			138,642
TOTAL ASSETS	$	436,137		$	550,557		$	339,569		$	233,858		$	173,974		$	177,937
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses		1,495,652			1,426,623			1,505,073		$	1,349,534		$	1,395,035		$	1,285,501
Notes payable		50,000			50,000			50,000			50,000			50,000			50,000
TOTAL CURRENT LIABILITIES		1,545,652			1,476,623			1,555,073			1,399,534			1,445,035			1,335,501
LONG-TERM LIABILITIES
Senior secured convertible notes payable		781,500			781,500			800,000			800,000			800,000			800,000
Convertible notes payable		140,000			140,000			140,000			140,000			140,000			140,000
Notes payable, net of discount		1,091,171			1,110,022			1,141,180			846,360			738,950			706,040
TOTAL LONG-TERM LIABILITIES		2,012,671			2,031,522			2,081,180			1,786,360			1,678,950			1,646,040
STOCKHOLDERS' DEFICIT
Preferred Stock, $ .001 par value; 75,000,000 shares authorized;
no shares issued and outstanding		-			-			-			-			-			-
Common stock, $ .001 par value; 175,000,000 shares authorized;
145,144,603, 145,144,603, 156,340,506, 155,340,506, 129,390,506 and
129,390,506 at September 30, 2011, June 30, 2011, March 31, 2011
September 30, 2010, June 30, 2010, and March 31, 2010		174,940			174,940			156,340			155,340			129,390			129,390
Additional paid in capital		8,817,382			8,817,382			8,253,081			8,224,081			8,041,431			8,041,431
Treasury stock		(113,389	)		(113,389	)		-			-			-			-
Deficit accumulated during the development stage		(12,001,119	)		(11,836,521	)		(11,706,105	)		(11,331,457	)		(11,120,832	)		(10,974,425	)
STOCKHOLDERS' DEFICIT		(3,122,186	)		(2,957,588	)		(3,296,684	)		(2,952,036	)		(2,950,011	)		(2,803,604	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	436,137		$	550,557		$	339,569		$	233,858		$	173,974		$	177,937

LaserLock Technologies, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Statements of Operations

 (Unaudited)

	Three Months		Nine Months	Three Months	Six Months	Three Months	Three Months	Nine Months	Three Months	Six months	Three Months
	Ended		Ended	Ended	Ended	Ended	Ended	Ended	Ended	Ended	Ended
	September 30,		September 30,	June 30,	June 30,	March 31,	September 30,	September 30,	June 30,	June 30,	March 31,
	2011		2011	2011	2011	2011	2010	2010	2010	2010	2010
NET REVENUES
Sales	$                    -		$                900	$                    -	$             900	$                900	$                   -	$                907	$                   10	$                   907	$                 897
Royalties	2,404		7,984	3,690	5,580	1,890	7,044	39,715	32,402	32,671	269
TOTAL NET REVENUE	2,404		8,884	3,690	6,480	2,790	7,044	40,622	32,412	33,578	1,166
COST OF SALES	-		373	-	373	373	-	808	10	808	798
GROSS PROFIT	2,404	#	8,511	3,690	6,107	2,417	7,044	39,814	32,402	32,770	368
OPERATING EXPENSES
Research and development	-		6,050	5,050	5,050	-	1,051	9,613	3,312	8,562	5,250
Patent costs	-		-	-	-	-	-	-	-	-	-
Legal and Accounting	3,500		48,099	34,630	44,599	9,969	3,000	11,279	5,279	8,279	3,000
Sales and Marketing	51,274		206,052	103,000	154,778	51,778	58,526	169,671	55,785	111,145	55,360
General and administrative	28,289		159,451	91,381	131,162	39,781	97,440	213,361	59,184	115,921	56,737
Total operating expenses	83,063		419,652	234,061	335,589	101,528	160,017	403,924	123,560	243,907	120,347
LOSS BEFORE OTHER INCOME	(80,659)		(411,141)	(230,371)	(329,482)	(99,111)	(152,973)	(364,110)	(91,158)	(211,137)	(119,979)
OTHER INCOME (EXPENSE)
Interest income	-		58	7	58	51	-	4	4	4	0
Interest expense	(82,940)		(251,408)	(84,295)	(168,468)	(84,173)	(57,651)	(166,321)	(55,253)	(108,670)	(53,417)
Gain on forgiveness of debt	-		184,242	184,242	184,242	-	-	-	-	-	-
Gain on eturn of common stock	-		12,000	12,000	12,000	-	-	-	-	-	-
	(82,940)		(55,108)	111,954	27,832	(84,122)	(57,651)	(166,317)	(55,249)	(108,666)	(53,417)
LOSS BEFORE INCOME TAX BENEFIT	(163,599)		(466,249)	(118,417)	(301,650)	(183,233)	(210,624)	(530,427)	(146,407)	(319,803)	(173,396)
INCOME TAX BENEFIT	-		-	-	-	-	-	-	-	-	-
NET LOSS	$        (163,599)		$        (466,249)	$        (118,417)	$    (301,650)	$       (183,233)	$        (210,624)	$        (530,427)	$        (146,407)	$          (319,803)	$        (173,396)
BASIC AND DILUTED NET LOSS PER
COMMON SHARE	$              (0.00)		$              (0.00)	$              (0.00)	$          (0.00)	$             (0.00)	$              (0.00)	$              (0.00)	$              (0.00)	$                (0.00)	$              (0.00)
BASIC AND DILUTED WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING	145,144,603		146,387,227	138,343,237	147,008,538	155,673,839	130,057,173	129,612,728	129,390,506	129,390,506	129,390

LaserLock Technologies, Inc. and Subsidiary

(A Development Stage Company)

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2011, 2010, 2009 and 2008

(Unaudited) 

	Nine Months	Six Months	Three Months	Nine Months		Six Months	Three Months
	Ended	Ended	Ended	Ended		Ended	Ended
	September 30,	June 30,	March 31,	September 30,		June 30,	March 31,
	2011	2011	2011	2010		2010	2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities	(241,289)	(151,931)	(55,427)	(181,869)	-	(90,360)	(63,595)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	-	-	-	-		-	-
Purchase of intangibles	(1,440)
Purchase of patent costs	-	-	-	(2,500)		-	-
Proceeds from sale of assets	-	-	-	-		-	-
Net cash used in investing activities	(1,440)	-	-	(2,500)		-	-
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	400,000	400,000	-	-		-	-
Proceeds from exercise of stock options	10,000	10,000	-	-		-	-
Proceeds from issuance of stock options	-	-	-	-		-	-
Proceeds from exercise of warrants	-	-	-	-		-	-
Proceeds from issuance of notes	-	-	-	186,500		79,000	51,000
Repayments of notes	(58,500)	(33,500)	-	(5,000)		-	-
Payment for treasury stock	(17,795)	(17,795)	-	-		-	-
Debt issuance costs	-	-	-	(16,500)		(7,500)	(7,500)
Stock issuance costs	(40,000)	(40,000)	-	-		-	-
Net cash provided by financing activities	293,705	318,705	-	165,000		71,500	43,500
NET DECREASE IN CASH AND
CASH EQUIVALENTS	50,976	166,774	(55,427)	(19,369)		(18,860)	(20,095)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	77,330	77,330	77,330	24,825		24,825	24,825
CASH AND CASH EQUIVALENTS - END OF PERIOD	$        128,306	$    244,104	$          21,903	$            5,456		$        5,965	$            4,730
SUPPLEMENTAL DISCLOSURE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES:
Cash paid during the year for:
Interest	$             5,245	$         1,125	$         563	$                279		$              91	$                  51
Income taxes	$                     -	$                -	$                     -			$                -	$                     -
Issuance of common stock for stock issuance costs	$            2,100	$        2,100	$                    -	$                    -		$               -	$                    -
Issuance of options as stock issuance cost for treasury stock	$            5,594	$        5,594	$                    -	$                    -		$               -	$                    -
Fair value of warrants issued for debt discount	$          21,275	$      21,275	$                    -	$          20,143		$      20,143	$          20,143