Note 10 - Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events [Text Block]

(10)  Subsequent Events

Subsequent to June 30, 2011 and through the date of this filing, we have received an aggregate of $110,000 in advances from existing investors in anticipation of entering into subscription agreements. We are using the proceeds of these investments for general working capital purposes.

In July 2011, the Chinese government approved the Debt Agreement and the Equity Transfer Agreement we entered into with Marr and Kangplus (see note 9).

In October 2011, we entered into a memorandum of understanding (“MoU”) with a private investor to secure funding needed to complete the FDA approval procedures for the new AWARETM 2 product. The MoU contemplates an initial investment of at least $1,000,000 through 2012, contingent upon the Company following an agreed upon budget plan, and potentially up to $4,000,000 from additional investors. Although the MoU expresses the expectation of the parties that the investor will assist us in raising an additional $4 million from other investors, no party is under a contractual obligation to invest any funds beyond the $1 million to be invested pursuant to the MoU, and there can be no assurance that we will be able to raise the additional funds.

We have evaluated all other subsequent events through the date of this filing, and determined there are no other material recognized or unrecognized subsequent events.