Quarterly report pursuant to Section 13 or 15(d)

Interim Consolidated Statements of Cash Flows (Unaudited)

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Interim Consolidated Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended 102 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Restated [Member]
Cash flows from operating activities:      
Net income (loss) $ (219,245) $ (8,750) $ (4,380,880)
Adjustments to reconcile net loss to net cash used in operating activities:      
Finance charges      27,387
Accrued interest on notes payable      31,414
Amortization       27,077
Expenses and service costs assumed by shareholders 10,850 2,000 870,378
Advanced payment to suppliers         
Foreign exchange effect on notes payable   0 5,303
Issuance of common stock for services      1,000
Stock-based compensation       39,330
Loss on disposition of equipment      225,184
Write-down of intangible assets   0 360,001
Write-off of payables       (73,607)
Write-off of notes payable      (18,729)
Gain on settlement of lawsuit       (44,445)
Gain on sale of discontinued operations      (108,121)
Gain on sale of investments    0 (31,874)
Other income      (42,530)
Impairment loss on long-term investment (Note 2)       2,267,252
Changes in non-cash working capital items:      
Decrease in accrued expenses 129,436 6,750 155,492
Other receivables (3,328)    143,666
Cash used in continuing operations (82,287) 0 (546,702)
Discontinued operations       (171,213)
Net cash used in operating activities (82,287)    (717,915)
Cash flows from investing activities:      
Proceeds from sale of subsidiary       1
Proceeds from assets disposition    0 5,458
Purchase of equipment       (5,808)
Net cash used in investing activities       (349)
Cash flows from financing activities:      
Short-term loan 79,282    79,282
Settlement of notes payable       398,614
Proceeds from issuance of common stock    0 50,525
Net cash provided by financing activities 79,282    528,421
Effect of exchange rate changes on cash (50)    (14,784)
Net increase/(decrease) in cash (3,055)    (204,627)
Cash, beginning of period 7,946 0 209,518
Cash, ending of period $ 4,891    $ 4,891