Quarterly report pursuant to sections 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)
3 Months Ended 6 Months Ended 174 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Income Statement [Abstract]          
Net sales $ 0 $ 0 $ 0 $ 0 $ 69,000
Cost of goods sold 0 0 0 0 24,120
Gross profit 0 0 0 0 44,880
Operating expenses 1,921,814 1,428,251 3,859,719 2,511,235 48,004,354
Research and development expenses 183,424 81,213 350,890 552,568 7,795,887
Non-cash patent settlement cost 0 0 0 0 1,610,066
Loss before other income (expense) (2,105,238) (1,509,464) (4,210,609) (3,063,803) (57,365,427)
Other income (expense) 2,384 (26,913) 15,975 38,450 207,947
Interest income 0 0 0 0 16,342
Interest and financing expense (351,422) (3,205,280) (2,814,289) (3,796,692) (19,490,906)
Change in fair value of derivative liabilities 971,902 345,987 (167,575) 1,563,584 1,960,626
Gain on extinguishment of derivative liabilities 85,576 0 85,576 0 85,576
Costs of private placement 0 0 0 0 (1,640,715)
Costs to induce conversion of notes 0 0 0 0 (469,043)
Loss on disposition of equipment 0 0 0 0 (14,426)
Settlement of Debt Due Morale/ Matthews 0 0 0 0 (927,903)
Settlement of litigation and debt 0 0 223,774 0 1,488,796
Loss before provision for income taxes (1,396,798) (4,395,670) (6,867,148) (5,258,461) (76,149,133)
Provision for income taxes 800 800 800 800 8,282
Net loss $ (1,397,598) $ (4,396,470) $ (6,867,948) $ (5,259,261) $ (76,157,415)
Net loss per share, basic and diluted $ (0.01) $ (0.04) $ (0.06) $ (0.06)  
Weighted average common shares outstanding,basic and diluted 127,283,585 100,431,182 122,748,623 91,277,666