Restatement of Certain Consolidated Financial Statements
 9 Months Ended 12 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Restatement Of Certain Consolidated Financial Statements [Abstract]    
Restatement of Certain Consolidated Financial Statements
 
2. Restatement of Certain Consolidated Financial Statements
 
Our Consolidated Statements of Operations for the three and nine months ended September 30, 2011 and our Consolidated Statements of Cash Flows for the nine months ended September 30, 2011 have been restated to correct the accounting for warrants issued as part of the Company’s January 2011 equity financing.  The Company has determined that, as prescribed under Accounting Standards Codification 480, Distinguishing Liabilities from Equity, these warrants should have been classified as liabilities on the Company’s Consolidated Balance Sheet because, according to the warrants' terms, a fundamental transaction could give rise to an obligation of the Company to pay cash to its warrant holders.  The proper accounting for this warrant liability requires the liability to be recorded at fair value on the Company’s Consolidated Balance Sheet, with corresponding changes in such fair value to be recognized in earnings on the Company’s Consolidated Statements of Operations in each subsequent period.
 
Accordingly, the Company has restated the financial statements referenced above to correct this error.  The correction of this error did not impact the operating results of the Company or its overall liquidity.  The effects of the restatement on the Company’s consolidated financial statements are set forth in the tables below:
 
Consolidated Statement of Operations for the Three Months Ended September 30, 2011:
 
   
As Originally Reported
   
Effect of Restatement
   
As Restated
 
Mark-to-market adjustment on warrant liability
 
$
-
   
$
632,475
   
$
632,475
 
Net loss before income tax
   
(511,290)
     
632,475
     
121,185
 
Net loss
   
(511,290)
     
632,475
     
121,185
 
Net loss per share - Basic and diluted
   
(0.01)
     
0.01
     
0.00
 
 
Consolidated Statement of Operations for the Nine Months Ended September 30, 2011:
 
   
As Originally Reported
   
Effect of Restatement
   
As Restated
 
Mark-to-market adjustment on warrant liability
 
$
-
   
$
2,014,575
   
$
2,014,575
 
Net loss before income tax
   
(2,064,903)
     
2,014,575
     
(50,328)
 
Net loss
   
(2,064,903)
     
2,014,575
     
(50,328)
 
Net loss per share - Basic and diluted
   
(0.06)
     
0.06
     
(0.00)
 
 
Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2011:
 
   
As Originally Reported
   
Effect of Restatement
   
As Restated
 
Net loss
 
$
(2,064,903)
   
$
2,014,575
   
$
(50,328)
 
Mark-to-market adjustment on warrant liability
   
 -
     
(2,014,575)
    
(2,014,575)
 
 
 
NOTE 12
RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS
 
Restatement of Certain Consolidated Financial Statements
 
Our Consolidated Balance Sheet as of December 31, 2011, our Consolidated Statement of Operations for the year ended December 31, 2011, our Consolidated Statement of Changes in Stockholders' Equity for the year ended December 31, 2011 and our Consolidated Statement of Cash Flows for the year ended December 31, 2011 have been restated to correct the accounting for warrants issued as part of the Company’s January 2011 equity financing. The Company has determined that, as prescribed under Accounting Standards Codification 480, Distinguishing Liabilities from Equity, these warrants should have been classified as liabilities on the Company’s Consolidated Balance Sheet because, according to the warrants' terms, a fundamental transaction could give rise to an obligation of the Company to pay cash to its warrant holders.  The proper accounting for this warrant liability requires the liability to be recorded at fair value on the Company’s Consolidated Balance Sheets, with corresponding changes in such fair value to be recognized in earnings on the Company’s Consolidated Statements of Operations in each subsequent period.
 
Accordingly, the Company has restated the financial statements referenced above to correct this error. The correction of this error did not impact the operating results of the Company or its overall liquidity.  The effects of the restatement on the Company’s consolidated financial statements are set forth in the tables below:
 
Consolidated Balance Sheet as of December 31, 2011:
 
   
As Originally Reported
    
Effect of Restatement
    
As Restated
  
Warrant liability
  
$
-
    
$
937,000
    
$
937,000
  
Total liabilities
    
5,154,442
      
937,000
      
6,091,442
  
Additional paid-in capital
    
11,231,864
      
(2,975,000)
      
8,256,864
  
Accumulated deficit
    
(5,722,743)
      
2,038,000
      
(3,684,743)
  
Total Stockholders' Equity
    
5,547,701
      
(937,000)
      
4,610,701
  
 
 
 
Consolidated Statements of Operations for the Year Ended December 31, 2011:
 
   
As Originally Reported
    
Effect of Restatement
    
As Restated
  
Mark-to-market adjustment on warrant liability
  
$
-
    
$
2,038,000
    
$
2,038,000
  
Total Other Income (Expense)
    
32,767
      
2,038,000
      
2,070,767
  
Loss Before Provision For Income Taxes
    
(3,631,173)
      
2,038,000
      
(1,593,173)
  
Net Loss
    
(3,631,173)
      
2,038,000
      
(1,593,173)
  
Net Loss Per Share - Basic and diluted
    
(0.10)
      
0.06
      
(0.04)
  
 
Consolidated Statement of Changes in Stockholders' Equity for the Year Ended December 31, 2011:
 
   
As Originally Reported
    
Effect of Restatement
    
As Restated
  
Additional paid-in capital
  
$
11,231,864
    
$
(2,975,000)
    
$
8,256,864
  
Accumulated deficit
    
(5,722,743)
      
2,038,000
      
(3,684,743)
  
Total Stockholders' Equity
    
5,547,701
      
(937,000)
      
4,610,701
  
 
Consolidated Statements of Cash Flows for the Year Ended December 31, 2011:
 
   
As Originally Reported
    
Effect of Restatement
    
As Restated
  
Net Loss
  
$
(3,631,173)
    
$
2,038,000
    
$
(1,593,173)
  
Mark-to-market adjustment on warrant liability
    
 -
      
(2,038,000)
      
(2,038,000)