UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q/A

(Amendment No. 1)

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934.

 

For the quarterly period ended March 31, 2013

 

Commission File Number: 333-148471

 

NANOVIRICIDES, INC.

(Exact name of Company as specified in its charter)

 

NEVADA 76-0674577
(State or other jurisdiction) (IRS Employer Identification No.)
of incorporation or organization)  

 

135 Wood Street, Suite 205

West Haven, Connecticut 06516

(Address of principal executive offices and zip code)

 

(203) 937-6137

(Company’s telephone number, including area code)

 

Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x     No ¨

 

Indicate by check mark whether the Company has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Company was required to submit and post such files). Yes x    No ¨

 

Indicate by check mark whether the Company is a larger accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one)

 

Large accelerated filer ¨ Accelerated filer ¨
Non-accelerated filer x Smaller reporting company ¨

 

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ¨     No  x

 

The number of shares outstanding of the Company's Common Stock as of May 15, 2013 was: 161,985,997

 

Explanatory Note: The sole purpose of this Amendment to NanoViricides, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2013, filed with the Securities and Exchange Commission on May 15, 2013 (the “Form 10-Q”), is to provide the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language) to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL. No other changes have been made to the Form 10-Q.

 

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liability under those sections.

 
 

 

NANOVIRICIDES, INC.

 

(A DEVELOPMENT STAGE COMPANY)

 

March 31, 2013 and 2012

 

Index to the Financial Statements

 

Contents   Page(s)
     
Balance Sheets at March 31, 2013 (Unaudited) and June 30, 2012   F-3
     
Statements of Operations for the Three and Nine Months Ended March 31, 2013 and 2012 and for the Period from May 12, 2005 (Inception) through March 31, 2013 (Unaudited)   F-4
     
Statements of Stockholders’ Equity for the Period from June 30, 2010 through March 31, 2013 (Unaudited)   F-5
     
Statements of Cash Flows for the Nine Months Ended March 31, 2013 and 2012 and for the Period from May 12, 2005 (Inception) through March 31, 2013 (Unaudited)   F-6
     
Notes to the Financial Statements (Unaudited)   F-7

 

F-2
 

 

Nanoviricides, Inc.

 

(A Development Stage Company)

Balance Sheets

 

   March 31, 2013   June 30, 2012 
   (Unaudited)     
         
ASSETS          
CURRENT ASSETS:          
Cash and cash equivalents  $15,457,807   $14,274,985 
Prepaid expenses   541,634    314,174 
Collateral advance for affiliate   1,000,000    - 
           
Total Current Assets   16,999,441    14,589,159 
           
PROPERTY AND EQUIPMENT          
Property and equipment   1,440,717    1,440,717 
Accumulated depreciation   (984,033)   (825,875)
           
Property and equipment, net   456,684    614,842 
           
TRADEMARK          
Trademark   458,954    458,954 
Accumulated amortization   (39,727)   (33,147)
           
Trademark, net   419,227    425,807 
           
Total Assets  $17,875,352   $15,629,808 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
CURRENT LIABILITIES:          
Accounts payable  $237,661   $238,358 
Accounts payable – related parties   630,385    365,681 
Accrued expenses   147,246    96,878 
Derivative liability   3,398,611    1,078,698 
           
Total Current Liabilities   4,413,903    1,779,615 
           
LONG TERM LIABILITIES:          
Debentures payable   3,339,067    - 
           
Total Long Term Liabilities   3,339,067    - 
           
Total Liabilities   7,752,970    1,779,615 
           
COMMITMENTS AND CONTINGENCIES          
           
STOCKHOLDERS' EQUITY:          
Series A Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, 10,465,000 and 9,871,250 shares issued and outstanding, respectively   10,466    9,872 
Series B Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated, none issued and outstanding   -    - 
Series C Convertible Preferred stock, $0.001 par value, 10,000,000 shares designated,
0 and 2,353 shares issued and outstanding, respectively
   -    2 
Common stock, $0.001 par value; 300,000,000 shares authorized; 164,540,249 and 155,612,293 shares issued and outstanding, respectively   164,571    155,645 
Additional paid-in capital   46,066,390    43,108,790 
Deficit accumulated during the development stage   (36,119,045)   (29,424,116)
           
Total Stockholders' Equity   10,122,382    13,850,193 
           
Total Liabilities and Stockholders' Equity  $17,875,352   $15,629,808 

 

See accompanying notes to the financial statements

 

F-3
 

 

Nanoviricides, Inc.

 

(A Development Stage Company)

Statements of Operations

 

                   For the Period from 
   For the Three Months   For the Three Months   For the Nine Months   For the Nine Months   May 12, 2005 
   Ended   Ended   Ended   Ended   (inception) through 
   March 31, 2013   March 31, 2012   March 31, 2013   March 31, 2012   March 31, 2013 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
                     
OPERATING EXPENSES                         
Research and development  $1,359,205   $1,582,705   $3,279,220   $3,252,745   $21,790,371 
Refund credit research and development costs   -    -    -    -    (420,842)
General and administrative   831,353    494,080    1,748,582    1,281,755    12,465,960 
                          
Total operating expenses   2,190,558    2,076,785    5,027,802    4,534,500    33,835,489 
                          
LOSS FROM OPERATIONS   (2,190,558)   (2,076,785)   (5,027,802)   (4,534,500)   (33,835,489)
                          
OTHER INCOME (EXPENSE):                         
Interest income (expense), net   (822,278)   30,801    (770,825)   40,283    (558,714)
Discount on convertible debentures   -    -    -    -    (73,930)
Beneficial conversion feature of convertible debentures   -    -    -    -    (713,079)
Change in fair market value of derivatives   (669,753)   14,131    (896,302)   (68,931)   (937,833)
                          
Other income (expense), net   (1,492,031)   44,932    (1,667,127)   (28,648)   (2,283,556)
                          
LOSS BEFORE INCOME TAX PROVISION   (3,682,589)   (2,031,853)   (6,694,929)   (4,563,148)   (36,119,045)
                          
INCOME TAX PROVISION   -    -    -    -    - 
                          
NET LOSS  $(3,682,589)  $(2,031,853)  $(6,694,929)   (4,563,148)  $(36,119,045)
                          
NET LOSS PER COMMON SHARE                         
- BASIC AND DILUTED:  $(0.02)  $(0.01)  $(0.04)   (0.02)     
                          
Weighted average common shares outstanding                         
- basic and diluted   163,454,938    151,556,920    159,902,326    147,890,395      

 

See accompanying notes to the financial statements

 

F-4
 

 

NanoViricides, Inc.

(A Development Stage Company)

Statement of Stockholders' Equity

For the period from June 30, 2010 through March 31, 2013

(Unaudited)

 

                                       Deficit     
                                       Accumulated     
   Series A Preferred Stock: Par $0.001   Series B Preferred Stock: Par $0.001   Series C Preferred Stock: Par $0.001   Common Stock: Par $0.001   Additional   During the   Total 
   Number of       Number of       Number of       Number of       Paid-in   Development   Stockholders' 
   Shares   Amount   Shares   Amount   Shares   Amount   Shares   Amount   Capital   Stage   Equity 
                                             
Please refer to Form 10K for the fisacal year ended June 30, 2012 filed with SEC on October 15, 2012 for equity transactions occurred prior to June 30, 2009                                                       
                                                        
Balance, June 30, 2010   7,593,750   $7,594    260,000   $260    -   $-    133,980,471   $133,981   $23,116,612   $(16,739,743)  $6,518,704 
                                                        
Common shares issued for conversion of Series B Preferred Shares at $1.51 per share, July 7, 2010                                 397,088    397              397 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, July 7, 2010             (60,000)   (60)                                 (60)
Dividend paid to Seaside 88, LP, July 7, 2010                                           (9,973)        (9,973)
Common shares issued as dividend to Seaside 88, LP at $1.65 per share, July 7, 2010                                 6,061    6    9,967         9,973 
Derivative liability - retirement of Series B Preferred Shares, July 7, 2010                                           116,715         116,715 
Common shares issued for conversion of Series B Preferred Shares at $1.30 per share, July 21, 2010                                 463,177    463              463 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, July 21, 2010             (60,000)   (60)                                 (60)
Dividend paid to Seaside 88, LP, July 21, 2010                                           (7,671)        (7,671)
Common shares issued as dividend to Seaside 88, LP at $1.32 per share, July 21, 2010                                 5,794    6    7,665         7,671 
Derivative liability - retirement of Series B Preferred Shares, July 21, 2010                                           113,700         113,700 
Common shares issued for consulting and legal services valued at $2.087 per share, July 31, 2010                                 3,086    3    4,997         5,000 
Common shares issued for conversion of Series B Preferred Shares at $1.14 per share, August 4, 2010                                 526,916    527              527 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 4, 2010             (60,000)   (60)                                 (60)
Dividend paid to Seaside 88, LP, August 4, 2010                                           (5,370)        (5,370)
Common shares issued as dividend to Seaside 88, LP, at $1.14 per share, August 4, 2010                                 4,716    5    5,365         5,370 
Derivative liability - retirement of Series B Preferred Shares, August 4, 2010                                           104,480         104,480 
Warrants issued to Scientific Advisory Board, August 15, 2010                                           45,000         45,000 
Common shares issued in conversion of Series B Preferred Shares at $0.99 per share, August 18, 2010                                 606,367    606              606 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 18, 2010             (60,000)   (60)                                 (60)
Dividend paid to Seaside 88, LP, August 18, 2010                                           (3,068)        (3,068)
Common shares issued as dividend to Seaside 88, LP at $0.99 per share, August 18, 2010                                 3,101    3    3,065         3,068 
Derivative liability - retirement of Series B Preferred Shares, August 18, 2010                                           104,795         104,795 
Common shares issued for consulting and legal services valued at $1.24 per share, August 31, 2010                                 4,032    4    4,996         5,000 
Common shares issued for conversion of Series B Preferred Shares at $0.93 per share, September 1, 2010                                 215,332    215              215 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, September 1, 2010             (20,000)   (20)                                 (20)
Dividend paid to Seaside 88, LP, September 1, 2010                                           (767)        (767)
Common shares issued as dividend to Seaside 88, LP at $1.00 per share, September 1, 2010                                 766    1    766         767 
Derivative liability - retirement of Series B Preferred Shares, September 1, 2010                                           34,841         34,841 
Series B Preferred Shares issued to SeaSide 88, LP,  September 21, 2010             250,000    250                        2,499,750         2,500,000 
Placement Agents fees related to sale of Convertible Preferred shares, September 21, 2010                                           (195,000)        (195,000)
Legal fees related to sale of Convertible Preferred Stock, September 21, 2010                                           (10,000)        (10,000)
Derivative liability - issuance of Series B Preferred Shares                                           (328,086)        (328,086)
Common shares issued for conversion of Series B Preferred Shares at $0.93 per share, September 21, 2010                                 430,015    430              430 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, September 21, 2010             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, September 21, 2010                                           103,012         103,012 
Common shares issued for consulting and legal services valued at $1.07 per share, September 30, 2010                                 4,673    5    4,995         5,000 
Common shares issued for conversion of Series B Preferred Shares at $0.87 per share, October 5, 2010                                 460,346    460              460 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, October 5, 2010             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, on October 5, 2010                                           (8,055)        (8,055)
Common shares issued as dividend to Seaside 88, LP at $0.87 per share, October 5, 2010                                 9,268    9    8,046         8,055 
Derivative liability - Retirement of Series B Preferred Shares, October 5, 2010                                           103,330         103,330 
Common shares issued for conversion of Series B Preferred Shares at $0.88 per share, October 19, 2010                                 452,965    453              453 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, October 19, 2010             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, October 19, 2010                                           (6,521)        (6,521)
Common shares issued as dividend to Seaside 88, LP at $0.88 per share, October 19, 2010                                 7,384    7    6,514         6,521 
Derivative liability - Retirement of Series B Preferred Shares, October 19, 2010                                           69,635         69,635 
Common shares issued for consulting and legal services valued at $1.03 per share, October 31, 2010                                 4,854    5    4,995         5,000 
Series A Preferred Shares issued for employee stock compensation, November 1, 2010   30,000    30                                  53,903         53,933 
Common shares issued for conversion of Series B Preferred Shares at $0.87 per share, November 2, 2010                                 461,313    461              461 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 4, 2010             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, November 2, 2010                                           (4,986)        (4,986)
Common shares issued as dividend to Seaside 88, LP at $0.87 per share, November 2, 2010                                 5,751    6    4,980         4,986 
Derivative liability - retirement of Series B Preferred Shares, November 2, 2010                                           69,104         69,104 
Warrants issued to Scientific Advisory Board, November 15, 2010                                           55,800         55,800 
Common shares issued for conversion of Series B Preferred Shares at $1.16 per share, November 16, 2010                                 345,817    346              346 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, November 16, 2010             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, November 16, 2010                                           (3,452)        (3,452)
Common shares issued as dividend to Seaside 88, LP at $1.16 per share, November 16, 2010                                 2,984    3    3,449         3,452 
Derivative liability - Retirement of Series B Preferred Shares, November 16, 2010                                           69,187         69,187 
Common shares issued for conversion of Series B Preferred Shares at $1.35 per share, November 30, 2010                                 310,566    311              311 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, November 30, 2010             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, November 30, 2010                                           (1,918)        (1,918)
Common shares issued as dividend to Seaside 88, LP at $1.35 per share, November 30, 2010                                 1,417    1    1,917         1,918 
Derivative liability - Retirement of Series B Preferred Shares, November 30, 2010                                           69,449         69,449 
Common shares issued for consulting and legal services valued at $1.46 per share, November 30, 2010                                 3,425    3    4,997         5,000 
Common shares issued for conversion of warrants to Common Stock at $1.00 per share, December 10, 2010                                 25,000    25    24,975         25,000 
Common shares issued as compensation pursuant to S-8 at $1.28 per share, December 10, 2010                                 50,000    50    63,950         64,000 
Common shares issued for conversion of Series B Preferred Shares at $1.10 per share, December 14, 2010                                 90,840    91              91 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, December 14, 2010             (10,000)   (10)                                 (10)
Dividend paid to Seaside 88, LP, December 14 2010                                           (384)        (384)
Common shares issued as Dividend to Seaside 88, LP, at $1.10 per share, December 14, 2010                                 348    -    384         384 
Derivative liability - retirement of Series B Preferred Shares, December 14, 2010                                           17,438         17,438 
Series B Preferred Shares issued to SeaSide 88, LP, December 21, 2010             250,000    250                        2,499,750         2,500,000 
Placement Agents fees related to sale of Convertible Preferred shares, December 21, 2010                                           (200,000)        (200,000)
Common shares issued for consulting and legal services valued at $1.32 per share, December 31, 2010                                 4,545    5    5,995         6,000 
Adjustment                                      33              33 
Common shares issued for conversion of Series B Preferred Shares at $1.16 per share, January 3, 2011                                 343,796    344              344 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, January 3, 2011             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, January 3, 2011                                           (8,904)        (8,904)
Common shares issued as dividend to Seaside 88, LP at $1.16 per share, January 3, 2011                                 7,653    8    8,896         8,904 
Derivative liability - retirement of Series B Preferred Shares, January 3, 2011                                           73,532         73,532 
Common shares issued for conversion of Series B Preferred Shares at $1.26 per share, January 17, 2011                                 317,965    318              318 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, January 17, 2011             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, January 17, 2011                                           (8,055)        (8,055)
Common shares issued as dividend to Seaside 88, LP at $1.26 per share, January 17, 2011                                 6,403    6    8,049         8,055 
Derivative liability - retirement of Series B Preferred Shares, January 17, 2011                                           70,882         70,882 
Common shares issued for conversion of Series B Preferred Shares at $1.12 per share, January 31, 2011                                 356,422    356              356 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, January 31, 2011             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, January 31, 2011                                           (6,521)        (6,521)
Common shares issued as dividend to Seaside 88, LP at $1.24 per share, January 31, 2011                                 5,271    5    6,516         6,521 
Derivative liability - retirement ofSeries B Preferred Shares, January 31, 2011                                           72,432         72,432 
Common shares issued for consulting and legal services valued at $1.47 per share, January 31, 2011                                 4,087    4    5,996         6,000 
Common shares issued for conversion of warrants at $1.00 per share, February 4, 2011                                 25,000    25    24,975         25,000 
Common shares issued for conversion of Series B Preferred Shares at $1.08 per share, February 14, 2011                                 370,017    370              370 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, February 14, 2011             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, February 14, 2011                                           (4,986)        (4,986)
Common shares issued as dividend to Seaside 88, LP, at $1.08 per share, February 14, 2011                                 4,613    5    4,981         4,986 
Derivative liability - retirement of Series B Preferred Shares, February 14, 2011                                           71,699         71,699 
Warrants issued to Scientific Advisory Board, Feburary 15, 2011                                           54,000         54,000 
Common shares issued for conversion of Series B Preferred Shares at $0.99 per share, February 28, 2011                                 405,610    406              406 
Derivative liability - retirement of Series B Preferred Shares, February 28, 2011                                           71,490         71,490 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, February 28, 2011             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, February 28, 2011                                           (3,452)        (3,452)
Common shares issued as dividend to Seaside 88, LP at $0.99 per shares, February 28, 2011                                 3,500    4    3,448         3,452 
Common shares issued for consulting and legal services valued at $1.22 per share, February 28, 2011                                 4,902    5    5,995         6,000 
Common shares issued for employee stock compensation  at $1.32 per share, March 3, 2011                                 250,000    250    316,000         316,250 
Series A Preferred Shares issued for employee stock compensation, March 3, 2011   593,750    594                                  1,364,036         1,364,630 
Common shares issued for conversion of Series B Preferred Shares at $1.09 per share, March 14, 2011                                 367,274    367              367 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, March 14, 2011             (40,000)   (40)                                 (40)
Dividend paid to Seaside 88, LP, March 14, 2011                                           (1,918)        (1,918)
Common shares issued as Dividend to Seaside 88, LP at $1.09 per shares, March 14, 2011                                 1,761    2    1,916         1,918 
Derivative Liability - Retirement of Series B Preferred Shares, March 14, 2011                                           70,566         70,566 
Common shares issued for conversion of Series B Preferred Shares at $1.11 per share, March 28, 2011                                 89,986    90              90 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, March 28, 2011             (10,000)   (10)                                 (10)
Dividend paid to Seaside 88, LP, March 28, 2011                                           (384)        (384)
Common shares issued as dividend to Seaside 88, LP, at $1.11 per share, March 28, 2011                                 345    -    384         384 
Derivative liability - retirement of Series B Preferred Shares, March 28, 2011                                           17,525         17,525 
Common shares issued for consulting and legal services valued at $1.28 per share, March 31, 2011                                 4,680    5    5,995         6,000 
Common shares issued for conversion of warrants to common stock at $1.00 per share, April 10, 2011                                 10,000    10    9,990         10,000 
Series B Preferred Shares issued to SeaSide 88, LP, April 18, 2011             250,000    250                        2,499,750         2,500,000 
Placement Agents fees related to sale of Convertible Preferred shares, April 18, 2011                                           (160,000)        (160,000)
Legal  fees related to Sale of Convertible Preferred Stock, April 18, 2011                                           (25,000)        (25,000)
Derivative liability - issuance of Series B Preferred Shares                                           (429,725)        (429,725)
Common shares issued for conversion of Series B Preferred Shares at $1.28 per share, April 18, 2011                                 312,163    312    (272)        40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, April 18, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, April 18, 2011                                           68,756         68,756 
Common shares issued for consulting and legal services valued at $1.47 per share, April 30, 2011                                 4,087    4    5,996         6,000 
Common shares issued for conversion of Series B Preferred Shares at $1.18 per share, May 2, 2011                                 339,726    340    (300)        40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, May 2, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, May 2, 2011                                           68,941         68,941 
Dividend paid to Seaside 88, LP, May 2, 2011                                           (8,055)        (8,055)
Common shares issued as dividend to Seaside 88, LP at $1.18 per shares, May 2, 2011                                 6,841    7    8,048         8,055 
Warrants issued to Scientific Advisory Board, May 15, 2011                                           50,400         50,400 
Common shares issued for conversion of Series B Preferred Shares at $1.19 per share, May 16, 2011                                 336,501    337    (297)        40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, May 16, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, May 16, 2011                                           69,194         69,194 
Dividend paid to Seaside 88, LP, May 16, 2011                                           (6,521)        (6,521)
Common shares issued as dividend to Seaside 88, LP at $1.20 per shares, May 16, 2011                                 5,438    5    6,516         6,521 
Common shares issued for conversion of Series B Preferred Shares at $1.23 per share, May 30, 2011                                 326,480    326    (286)        40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, May 30, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, May 30, 2011                                           69,464         69,464 
Dividend paid to Seaside 88, LP, May 30, 2011                                           (4,986)        (4,986)
Common shares issued as Dividend to Seaside 88, LP at $1.23 per share, May 30, 2011                                 4,070    4    4,982         4,986 
Common shares issued for consulting and legal services valued at $1.47 per share, May 31, 2011                                 4,087    4    5,996         6,000 
Common shares issued for conversion of Series B Preferred Shares at $1.18 per share, June 13, 2011                                 339,971    340    (300)        40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, June 13, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, June 13, 2011                                           69,727         69,727 
Dividend paid to Seaside 88, LP, June 13, 2011                                           (3,452)        (3,452)
Common shares issued as Dividend to Seaside 88, LP at $1.18 per share, June 13, 2011                                 2,934    3    3,449         3,452 
Common shares issued for conversion of Series B Preferred Shares at $1.02 per share, June 27, 2011                                 391,850    392    (352)        40 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, June 27, 2011             (40,000)   (40)                                 (40)
Derivative Liability - Retirement of Series B Preferred Share, June 27, 2011                                           69,973         69,973 
Dividend paid to Seaside 88, LP, June 27, 2011                                           (1,918)        (1,918)
Common shares issued as Dividend to Seaside 88, LP at $1.10 per share, June 27, 2011                                 1,741    2    1,916         1,918 
Common shares issued for consulting and legal services valued at $1.22 per share, June 30, 2011                                 4,902    5    5,995         6,000 
                                                        
Net loss                                                (6,477,165)   (6,477,165)
                                                        
Balance, June 30, 2011   8,217,500    8,218    10,000    10    -    -    143,548,494    143,582    33,235,990    (23,216,908)   10,170,891 
                                                        
Common shares issued for conversion of Series B Preferred Shares at $1.11 per share, July 11, 2011                                 89,986    90              90 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, July 11, 2011             (10,000)   (10)                                 (10)
Derivative liability - retirement of Series B Preferred Shares, July 11, 2011                                           17,881         17,881 
Dividend to Seaside 88, LP, paid on July 11, 2011                                           (381)        (381)
Common shares issued as dividend to Seaside 88, LP at $1.18 per share, July 11, 2011                                 345    -    381         381 
Series B Preferred Shares issued to SeaSide 88, LP, on July 26, 2011             250,000    250                        2,499,750         2,500,000 
Placement Agents fees related to sale of Convertible Preferred shares, July 26, 2011                                           (150,000)        (150,000)
Derivative liability - issuance of Series B Preferred Shares                                           (429,768)        (429,768)
Legal  Fees related to Sale of Convertible Preferred Stock, July 26, 2011                                           (6,250)        (6,250)
Common shares issued in conversion of Series B Preferred Shares to common stock at $1.18 per share, July 26, 2011                                 377,800    378              378 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, July 26, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, July 26, 2011                                           68,425         68,425 
Common shares issued for consulting and legal services valued at $1.26 per share, July 31, 2011                                 4,762    5    5,995         6,000 
Warrants issued to Scientific Advisory Board, August 15, 2011                                           56,400         56,400 
Common shares issued for conversion of Series B Preferred Shares at $0.92 per share, August 8, 2011                                 437,187    437              437 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 8, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, August 8, 2011                                           69,193         69,193 
Dividend to Seaside 88, LP, paid on August 8, 2011                                           (8,055)        (8,055)
Common shares issued as Dividend to Seaside 88, LP at $0.98 per share, August 8, 2011                                 8,205    8    8,047         8,055 
Common shares issued for conversion of Series B Preferred Shares at $0.95 per share, August 23, 2011                                 419,829    420              420 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, August 23, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, August 23, 2011                                           69,351         69,351 
Dividend paid to Seaside 88, LP, August 23, 2011                                           (6,521)        (6,521)
Common shares issued as Dividend to Seaside 88, LP at $0.95 per share, August 23, 2011                                 6,844    7    6,514         6,521 
Common shares issued for consulting and legal services valued at $1.14 per share, August 31, 2011                                 5,263    5    5,995         6,000 
Common shares issued for conversion of Series B Preferred Shares at $0.95 per share, September 6, 2011                                 422,873    423              423 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, September 6, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Shares, September 6, 2011                                           69,887         69,887 
Dividend paid to Seaside 88, LP, September 6, 2011                                           (4,986)        (4,986)
Common shares issued as Dividend to Seaside 88, LP at $0.95 per share, September 6, 2011                                 5,264    5    4,981         4,986 
Common shares issued in conversion of Series B Preferred Shares at $0.94 per share, September 19, 2011                                 427,652    428              428 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, September 19, 2011             (40,000)   (40)                                 (40)
Derivative liability - retirement of Series B Preferred Share, September 19, 2011                                           69,970         69,970 
Dividend to Seaside 88, LP, paid on September 19, 2011                                           (3,452)        (3,452)
Common shares issued as Dividend to Seaside 88, LP at $0.94 per share, September 19, 2011                                 3,691    3    3,449         3,452 
Common shares issued for consulting and legal services valued at $1.07 per share, September 30, 2011                                 5,607    6    5,994         6,000 
Shares issued in conversion of Series B Preferred Shares to Common Stock at $.78 per share, .001 par value, on October 3, 2011                                 514,311    514              514 
Retirement of Series B Preferred Shares converted into common stock by SeaSide 88, LP, .001 par value on October 3, 2011             (40,000)   (40)                                 (40)
Derivative Liability - Retirement of Preferred Series B on October 3, 2011                                           69,496