RESTATEMENT

12 Months Ended

Dec. 31, 2011

RESTATEMENT

RESTATEMENT

NOTE 16-RESTATEMENT

The Company has restated its financial statements for year ended December 31, 2010.  The significant changes made are further described and summarized below.

The Company had not previously recorded the derivative liabilities associated with convertible debt, debentures, and warrants issued in 2010.  The Company has restated its financial statements for 2010 to record these corrections.

The following table highlights the significant areas of change:

	Year Ended December 31, 2010
	As Previously
	Reported			Restated
	December 31,			December 31,
	2010			2010			Change
Total Assets	$	6,783,327		$	6,783,327		$	-
Total Liabilities	$	(3,914,535	)	$	(6,225,518	)	$	(2,310,983	)
Stockholders' Equity	$	(2,868,792	)	$	(557,809	)	$	(2,310,983	)
Net Income (Loss)	$	(5,135,491	)	$	(6,641,817	)	$	(1,506,326	)
Income (Loss) available to common stockholders	$	(5,135,491	)	$	(6,641,817	)	$	(1,506,326	)
Basic Loss per share	$	(0.14	)	$	(0.19	)	$	(0.05	)