Going Concern	9 Months Ended
Mar. 31, 2012
Notes to Financial Statements
Going Concern	NOTE 2 - Going Concern These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize it assets and discharge its liabilities in the normal course of business. As of March 31, 2012, the Company had an accumulated deficit and stockholders’ deficit of $19,714,293 and $864,769, respectively, and incurred losses from operations of $3,646,794 for the nine months ended March 31, 2012 and used cash from operations of $2,891,623 during the nine months ended March 31, 2012. In addition, the Company has not yet generated revenue sufficient to support ongoing operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. In February 2011, the Company renegotiated its Line of Credit with its largest principal stockholder (the Lender) to replace the Line of Credit with a five-year convertible note with a reduced principal amount (Note 3). On January 4, 2012, the Company signed a new $5 million purchase agreement with Lincoln Park Capital Fund, LLC, an Illinois limited liability company (“LPC”). In January 2012, the Company sold 166,667 shares of the Company’s common stock to LPC for gross proceeds of $100,000 and issued LPC 150,000 commitment shares. The Company has entered into a new registration rights agreement with LPC. The registration statement registering the shares issuable under the purchase agreement with LPC was declared effective on March 26, 2012. As such, the Company could receive up to $4.9 million from the sale of stock to LPC over the next 30 months. See Note 3. In addition, since January 1, 2012 the Company has issued 1,150,067 shares of common stock in exchange for $516,700 and has issued six month original issue discount notes, convertible at $0.50 per in share, with an aggregate principal amount of $504,874 in exchange for $430,000 and forgiveness of $74,874 of accrued interest. The shares of common stock and the notes were issued in connection with private placements with accredited investors.

Going Concern

9 Months Ended

Mar. 31, 2012

NOTE 2 - Going Concern

These unaudited condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize it assets and discharge its liabilities in the normal course of business. As of March 31, 2012, the Company had an accumulated deficit and stockholders’ deficit of $19,714,293 and $864,769, respectively, and incurred losses from operations of $3,646,794 for the nine months ended March 31, 2012 and used cash from operations of $2,891,623 during the nine months ended March 31, 2012. In addition, the Company has not yet generated revenue sufficient to support ongoing operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.

In February 2011, the Company renegotiated its Line of Credit with its largest principal stockholder (the Lender) to replace the Line of Credit with a five-year convertible note with a reduced principal amount (Note 3).

On January 4, 2012, the Company signed a new $5 million purchase agreement with Lincoln Park Capital Fund, LLC, an Illinois limited liability company (“LPC”). In January 2012, the Company sold 166,667 shares of the Company’s common stock to LPC for gross proceeds of $100,000 and issued LPC 150,000 commitment shares. The Company has entered into a new registration rights agreement with LPC. The registration statement registering the shares issuable under the purchase agreement with LPC was declared effective on March 26, 2012. As such, the Company could receive up to $4.9 million from the sale of stock to LPC over the next 30 months. See Note 3.

In addition, since January 1, 2012 the Company has issued 1,150,067 shares of common stock in exchange for $516,700 and has issued six month original issue discount notes, convertible at $0.50 per in share, with an aggregate principal amount of $504,874 in exchange for $430,000 and forgiveness of $74,874 of accrued interest. The shares of common stock and the notes were issued in connection with private placements with accredited investors.

- Definition

Disclosure of accounting policy for reporting when there is a substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time (generally a year from the balance sheet date). Disclose: (a) pertinent conditions and events giving rise to the assessment of substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time, (b) the possible effects of such conditions and events, (c) management's evaluation of the significance of those conditions and events and any mitigating factors, (d) possible discontinuance of operations, (e) management's plans (including relevant prospective financial information), and (f) information about the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities. If management's plans alleviate the substantial doubt about the entity's ability to continue as a going concern, disclosure of the principal conditions and events that initially raised the substantial doubt about the entity's ability to continue as a going concern would be expected to be considered. Disclose whether operations for the current or prior years generated sufficient cash to cover current obligations, whether waivers were obtained from creditors relating to the company's default under the provisions of debt agreements and possible effects of such conditions and events, such as: whether there is a possible need to obtain additional financing (debt or equity) or to liquidate certain holdings to offset future cash flow deficiencies. Disclose appropriate parent company information when parent is dependent upon remittances from subsidiaries to satisfy its obligations.

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