(3)	Going concern

During the six months ended June 30, 2011, the Company had a net loss of $7,538,563. At June 30, 2011, the Company had a working capital deficit of $16,879,578 (excluding its derivative liability) and a shareholders’ deficiency of $22,826,718. The Company is also delinquent in payment of $117,824 for payroll taxes as of June 30, 2011 and in default of certain of its short term notes payable. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty. The Company intends to raise funds to finance operations until the Company achieves profitable operations. The Company’s capital requirements for the next 12 months will continue to be significant. If adequate funds are not available to satisfy either medium or long-term capital requirements, the Company’s operations and liquidity could be materially adversely affected and the Company could be forced to cut back its operations. Subsequent to June 30, 2011, the Company raised $42,500 through the issuance of convertible notes payable and $572,835 through the issuance of common stock pursuant to the Dutchess Opportunity Fund agreement (See Note 13).