Note 26 - Unconsolidated Affiliates

12 Months Ended

Dec. 31, 2011

Deconsolidation, Related Party, Description

26. Unconsolidated Affiliates

We used the equity method to account for our former 45% ownership of the China joint venture and our current 26% (non-diluted) ownership of Tarsa. Our proportionate share of each joint venture’s net loss was included in the accompanying statements of operations. In addition, in 2011, we recognized a $2,819,000 loss on our investment in Tarsa and a $1,376,000 loss on our investment in the China joint venture.  Below is summarized balance sheet and  statement of operations information for the years ended December 31, 2011 and 2010.  Due to the sale of our interest in the China joint venture in 2011, the summarized information below for 2011 only includes Tarsa.

Summarized balance sheet information as of December 31, 2011 and 2010, as follows:

	2011			2010
Current assets	$	3,013,559		$	7,557,116
Fixed assets - net		104,953			12,183,164
Intangible and other assets		7,142,469			5,403,461
Current liabilities		27,571,779			19,862,510
Non-current liabilities		1,713,408			659,756
Stockholders’ (deficit) equity		(19,024,206	)		4,621,475

Summarized statement of operations information for the years ended December 31, 2011 and 2010, as follows:

	2011			2010
Revenue	$	--		$	--
Operating loss		(13,984,573	)		(13,971,628	)
Net loss	$	(18,563,930	)	$	(14,149,614	)