Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Supplemental Cash Flow Information

NOTE 10 - Supplemental Cash Flow Information

Cash paid for interest was approximately $37,500 in 2011 and $0 in 2010.

During the six months ended June 30, 2011 and 2010 the Company:

·issued approximately 3,881,729,000 and 152,882,000 shares, respectively, of common stock upon conversion of approximately $348,000 and $416,000, respectively, of Convertible Debentures;

·issued 200,000,000 and 2,500,000 shares, respectively, of common stock in exchange for current liabilities of approximately $15,000 and $11,000, respectively;

·recognized approximately $13,000 and $291,000, respectively, of unamortized debt discount and $13,000 and $291,000, respectively, of derivative liability relating to the issuance of new convertible debentures; issued approximately $131,200 and $326,500, respectively, of convertible debentures in exchange for current liabilities; and

·issued approximately 4,577,000 shares of Common Stock in 2010 upon conversion of 376 shares of Series B Preferred Stock. There were no conversions in 2011.