Restatement

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Restatement

Note 11 - RESTATEMENT

We have determined that our previously reported results for the quarter ended March 31, 2012 erroneously included a charge to retained earnings and the omission of the reversal of director’s stock compensation in the consolidated statement of operations due to forfeiture of shares by the director. This adjustment does not affect previously reported total assets, liabilities and stockholders’ equity reported on the consolidated balance sheets. We have made necessary conforming changes in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” resulting from the correction of these errors.

The following tables reflect the impact of these corrections on our financial statements:

Balance Sheet
	As of		As of
	March 31, 2012		March 31, 2012
	Originally  Stated	Restatement Adjustments	Restated
Stockholders' equity
Common stock; $.001 par value; 105,000,000
shares authorized, 47,609,775 shares issued
and outstanding as of March 31, 2012	47,610	-	47,610
Preferred stock: $.001 par value: 10,000,000
shares authorized, 0 shares issued and
Outstanding as of March 31, 2012
Additional paid-in capital	6,192,414	(2,650,000)	3,542,414
Common stock payable
Common stock receivable
Accumulated deficit during development stage	(5,892,258)	2,649,999	(3,242,259)
Total stockholders' equity	347,766	(1)	347,765