Quarterly report pursuant to sections 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended 58 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (2,014,988) $ (513,656) $ (8,409,668)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation 2,354 2,239 19,666
Amortization and write down of deferred financing costs 196,166 0 249,543
Non-cash interest, consisting of common stock and warrants issued in connection with convertible debentures 426,152 0 426,152
Non-cash financing costs related to January and March 2012 financing 81,337 0 81,337
Change in fair value of warrant liability (47,023) 0 (47,023)
Common stock issued in exchange for intellectual property 0 8,865 383,250
Stock based compensation 0 40,236 686,713
Gain on extinguishment of debt 0 0 (7,908)
Changes in operating assets and liabilities:      
Prepaid expenses 38,383 1,638 (64,047)
Accounts payable (512,790) 77,374 182,408
Accrued interest (35,195) 0 3,111
Accrued expenses 88,503 (7,400) 199,443
Deferred rent payable (513) 9,755 28,570
Net cash used in operating activities (1,777,614) (380,949) (6,268,453)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of furniture and fixtures 0 (2,764) (42,862)
Increase in cash overdraft 0 17,741 0
Interest earned on restricted cash (22) (22) (60,199)
Net cash (used in) provided by investing activities (22) 14,955 (103,061)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from demand notes 0 0 480,000
Proceeds from notes payable 0 0 700,000
(Repayments) proceeds from Convertible Debentures (150,000) 0 1,351,000
Proceeds, net of expenses $304,870, from January and March 2012 financing 4,387,895 0 4,387,895
Proceeds from the sale of capital stock 0 302,999 1,954,001
Net cash provided by financing activities 4,237,895 302,999 8,872,896
Net (decrease) increase in cash 2,460,259 (62,995) 2,501,382
Cash, beginning of the period 41,123 65,359 0
Cash, end of period 2,501,382 2,364 2,501,382
Supplemental disclosures of cash flow information:      
Interest paid 35,195   35,195
Non cash investing and financing activities:      
Senior convertible notes exchanged for preferred shares 0 0 200,000
Common stock issued for deferred financing costs 0 0 144,000
Warrants issued in connection with January and March 2012 Financing charged to stockholders' deficiency $ 130,898 $ 0 $ 130,898