In consideration for services provided to the Board of Directors, the
Company issued 26,318 shares of its common stock to Steven Girgenti
on March 23, 2009 and July 28, 2009, (52,636 shares in aggregate).
In accordance with an existing consulting agreement, in consideration
for services provided, the Company issued 39,145 shares of its common
stock to Dr. Konstantin Slavin on July 28, 2009.
On January 11, 2010, the Company issued 531,376,500 shares of common
stock to Fountainhead Capital Management Limited in accordance with
the terms of a Debenture Exchange Agreement dated as of December 29,
2009 (see Exhibit 4.1 to the Company's Form 8-K Current Report filed
with the SEC on January 6, 2010.
On January 11, 2010, the Company issued 4,000,000 shares of common
stock to Jodi Yeager on the conversion of $50,000 face value of the
Company's convertible debenture.
On January 11, 2010, the Company issued 8,787,600 shares of common
stock to Panamerica Capital Group, Inc. on the conversion of $109,845
face value of the Company's convertible debenture.
On January 11, 2010, the Company issued 9,187,600 shares of common
stock to Hyperlink Media, LLC on the conversion of $114,845 face
value of the Company's convertible debenture.
On January 11, 2010, the Company issued 10,320,000 shares of common
stock to Karen Ginder on the conversion of $129,000 face value of the
Company's convertible debenture.
On January 11, 2010, the Company issued 4,000,000 shares of common
stock to Accessible Development Corp. on the conversion of $50,000
face value of the Company's convertible debenture.
On January 11, 2010, the Company issued 16,000,000 shares of common
stock to Altitude Group, LLC on the conversion of $200,000 face value
of the Company's convertible debenture.
On January 11, 2010, the Company issued 6,000,000 shares of common
stock to Mario Zachariou on the conversion of $75,000 face value of
the Company's convertible debenture.
On January 11, 2010, the Company issued 6,000,000 shares of common
stock to Anthony Cantor on the conversion of $75,000 face value of
the Company's convertible debenture.
On January 12, 2010, SLJ Consulting Corp. purchased 80,000 shares of
the Company's series B Preferred Stock for $80,000 cash.
On January 12, 2010, Joseph Simone purchased 35,000 shares of the
Company's series B Preferred Stock for $35,000 cash.
On February 23, 2010, in consideration for services provided to the
Board of Directors (valued at $10,000), the Company issued 800,000
shares of its common stock to Steven Girgenti.
On March 11, 2010, Kenneth D. Watkins purchased 25,000 shares of the
Company's series B Preferred Stock for $25,000 cash.
The securities issued in the abovementioned transactions were issued
in connection with private placements exempt from the registration
requirements of Section 5 of the Securities Act of 1933, as amended,
pursuant to the terms of Section 4(2) of that Act and Rule 506 of
Regulation D.
ITEM 6. SELECTED FINANCIAL DATA
See Item 7Results of Operations, below.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION.
Critical Accounting Policies and Estimates
Uses of estimates in the preparation of financial statements
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States ("GAAP") requires
management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes.
Currently, the Company estimates depreciation, amortization of
intangible assets, and the fair values of options and warrants.