| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Nevada                                                        | 20-1212923                       |
|---------------------------------------------------------------|----------------------------------|
| (State or other jurisdictionof incorporation or organization) | (IRS EmployerIdentification No.) |

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

----

|                           |                                                                                        | Page No. |
|--------------------------------|---------------------------------------------------------------------------------------------|----------|
|                           |                                                                                        |     |
| PART I - FINANCIAL INFORMATION | [1]                                                                                         |
|                           |                                                                                        |
| ITEM 1.                        | FINANCIAL STATEMENTS                                                                        |     |
|                           |                                                                                        |     |
|                           | Consolidated Balance Sheets                                                                 | [1]      |
|                           |                                                                                        |     |
|                           | Consolidated Statements of Operations                                                       | [2]      |
|                           |                                                                                        |     |
|                           | Consolidated Statements of Cash Flows                                                       | [3]      |
|                           |                                                                                        |     |
|                           | Notes to Consolidated Financial Statements                                                  | [6]      |
|                           |                                                                                        |     |
| ITEM 2.                        | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | [12]     |
|                           |                                                                                        |     |
| ITEM 4.                        | CONTROLS AND PROCEDURES                                                                     | [17]     |
|                           |                                                                                        |     |
| PART II - OTHER INFORMATION    | [17]                                                                                        |
|                           |                                                                                        |
| ITEM 1A. RISK FACTORS          | [17]                                                                                        |
|                           |                                                                                        |
| ITEM 2.                        | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                 | [17]     |
|                           |                                                                                        |     |
| ITEM 5.                        | OTHER INFORMATION                                                                           | [18]     |
|                           |                                                                                        |     |
| ITEM 6.                        | EXHIBITS                                                                                    | [19]     |
|                           |                                                                                        |     |
| SIGNATURES                     | [20]                                                                                        |

----

|                                                                                                                                                                                          |   | March 31,2011 |        |   | December 31,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|-----------------------|--------|
| Assets                                                                                                                                                                                        |   |               |        |   |                  |   |
| Current assets:                                                                                                                                                                               |   |               |        |   |                  |   |
| Cash                                                                                                                                                                                          |   | $                  | 74,248      |   |                  | $      | 419,136 |   |
| Other current assets                                                                                                                                                                          |   |               | 108,117     |   |                  |   | 136,437 |   |
| Total current assets                                                                                                                                                                          |   |               | 182,365     |   |                  |   | 555,573 |   |
| Equipment and furniture, net                                                                                                                                                                  |   |               | 15,094      |   |                  |   | 15,232 |   |
| Debt issuance costs, net                                                                                                                                                                      |   |               | 4,149       |   |                  |   | 4,400 |   |
|                                                                                                                                                                                          |   | $                  | 201,608     |   |                  | $      | 575,205 |   |
| Liabilities and Shareholders’ Deficit                                                                                                                                                   |   |               |        |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                          |   |               |        |   |                  |   |   |   |
| Notes payable, bank                                                                                                                                                                           |   | $                  | 1,000,025   |   |                  | $      | 900,000 |   |
| Notes payable                                                                                                                                                                                 |   |               | —     |   |                  |   | 24,902 |   |
| Accounts payable                                                                                                                                                                              |   |               | 546,209     |   |                  |   | 614,234 |   |
| Accrued license and development fees                                                                                                                                                          |   |               | —     |   |                  |   | — |   |
| Accrued expenses                                                                                                                                                                              |   |               | 168,511     |   |                  |   | 186,343 |   |
| Total current liabilities                                                                                                                                                                     |   |               | 1,714,745   |   |                  |   | 1,725,479 |   |
|                                                                                                                                                                                          |   |               |        |   |                  |   |   |   |
| Commitments and contingencies                                                                                                                                                                 |   |               |        |   |                  |   |   |   |
| Long-term note payable, bank                                                                                                                                                                  |   |               | —     |   |                  |   | 100,025 |   |
| Long-term note payable                                                                                                                                                                        |   |               | —     |   |                  |   | 376,018 |   |
| Long-term convertible notes payable                                                                                                                                                           |   |               | 376,716     |   |                  |   | — |   |
| Total liabilities                                                                                                                                                                             |   |               | 2,091,461   |   |                  |   | 2,201,522 |   |
| Shareholders’ deficit:                                                                                                                                                                  |   |               |        |   |                  |   |   |   |
| Common stock, $0.00001 par. Authorized 50,000,000 shares; issued and outstanding 15,955,604 and 15,777,883 shares on  March 31, 2011 and December 31, 2010,  respectively |   |               | 160         |   |                  |   | 158 |   |
| Additional paid-in capital                                                                                                                                                                    |   |               | 32,524,192  |   |                  |   | 32,272,782 |   |
| Deficit accumulated during development stage                                                                                                                                                  |   |               | (34,414,205 | )      |                  |   | (33,899,257 | ) |
| Total shareholders’ deficit                                                                                                                                                             |   |               | (1,889,853  | )      |                  |   | (1,626,317 | ) |
|                                                                                                                                                                                          |   | $                  | 201,608     |   |                  | $      | 575,205 |   |

----

----

|                                                   |   | Three Months Ended March 31 |       |   | Period fromAugust 17,1999(Inception) toMarch 31, |   |
|--------------------------------------------------------|--------|-------------------------------------------------|------------|--------|----------------------------------------------------------------------|--------|
|                                                   |   | 2011                                            |       |   | 2010                                                                 |   |   | 2011 |   |
| Operating expenses:                                    |   |                                            |       |   |                                                                 |   |   |   |   |
|                                                   |   |                                            |       |   |                                                                 |   |   |   |   |
| Research and development                               |   | $                                               | 28,692     |   |                                                                 | $      | 84,154 |   |   | $ | 7,958,987 |   |
| General and administrative                             |   |                                            | 320,516    |   |                                                                 |   | 485,150 |   |   |   | 13,740,428 |   |
| Total operating expenses                               |   |                                            | 349,208    |   |                                                                 |   | 569,304 |   |   |   | 21,699,415 |   |
|                                                   |   |                                            |       |   |                                                                 |   |   |   |   |   |   |   |
| Operating loss                                         |   |                                            | (349,208   | )      |                                                                 |   | (569,304 | ) |   |   | (21,699,415 | ) |
|                                                   |   |                                            |       |   |                                                                 |   |   |   |   |   |   |   |
| Incentive for early warrant exercise                   |   |                                            | —    |   |                                                                 |   | — |   |   |   | (1,999,622 | ) |
| Incentive for early warrant exercise - related parties |   |                                            | —    |   |                                                                 |   | — |   |   |   | (727,481 | ) |
| Interest income                                        |   |                                            | 798        |   |                                                                 |   | 1,295 |   |   |   | 23,860 |   |
| Interest expense                                       |   |                                            | (30,520    | )      |                                                                 |   | (68,228 | ) |   |   | (5,475,524 | ) |
| Interest expense - related parties                     |   |                                            | —    |   |                                                                 |   | (20,028 | ) |   |   | (2,306,049 | ) |
| Debt extinguishment expense                            |   |                                            | (20,518    | )      |                                                                 |   | (882,092 | ) |   |   | (1,405,891 | ) |
| Debt extinguishment expense - related parties          |   |                                            | (115,500   | )      |                                                                 |   | (33,334 | ) |   |   | (824,083 | ) |
|                                                   |   |                                            |       |   |                                                                 |   |   |   |   |   |   |   |
| Net loss                                               |   | $                                               | (514,948   | )      |                                                                 | $      | (1,571,691 | ) |   | $ | (34,414,205 | ) |
|                                                   |   |                                            |       |   |                                                                 |   |   |   |   |   |   |   |
| Net loss per common share:                             |   |                                            |       |   |                                                                 |   |   |   |   |   |   |   |
| Basic and diluted                                      |   | $                                               | (0.03      | )      |                                                                 | $      | (0.14 | ) |   | $ | (10.86 | ) |
|                                                   |   |                                            |       |   |                                                                 |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding:         |   |                                            |       |   |                                                                 |   |   |   |   |   |   |   |
| Basic and diluted                                      |   |                                            | 15,842,097 |   |                                                                 |   | 11,617,324 |   |   |   | 3,169,221 |   |

----

----

|                                                      |   | Three Months EndedMarch 31 |     |   | Period from August17, 1999 (inception) to |   |
|-----------------------------------------------------------|--------|-------------------------------------------|----------|--------|---------------------------------------------------------------|--------|
|                                                      |   | 2011                                      |     |   | 2010                                                          |   |   | March 31, 2011 |   |
| Cash flows from operating activities:                     |   |                                      |     |   |                                                          |   |   |   |   |
| Net loss                                                  |   | $                                         | (514,948 | )      |                                                          | $      | (1,571,691 | ) |   | $ | (34,414,205 | ) |
| Adjustments to reconcile net loss to net cash             |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
| used in operating activities:                             |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
| Depreciation and amortization                             |   |                                      | 138      |   |                                                          |   | 138 |   |   |   | 21,673 |   |
| Gain on sale of furniture and equipment                   |   |                                      | —  |   |                                                          |   | — |   |   |   | (2,200 | ) |
| Stock-based compensation                                  |   |                                      | 21,894   |   |                                                          |   | 68,585 |   |   |   | 2,560,240 |   |
| Common stock issued  for services rendered      |   |                                      | —  |   |                                                          |   | — |   |   |   | 275,712 |   |
| Common stock issued for interest                          |   |                                      | 2,697    |   |                                                          |   | — |   |   |   | 2,697 |   |
| Common stock issued to related parties for interest       |   |                                      | —  |   |                                                          |   | — |   |   |   | 17,467 |   |
| Common stock issued for debt guarantees                   |   |                                      | —  |   |                                                          |   | — |   |   |   | 106,667 |   |
| Common stock issued for debt issuance cost                |   |                                      | —  |   |                                                          |   | — |   |   |   | 6,667 |   |
| Common stock issued for debt extinguishment               |   |                                      | —  |   |                                                          |   | 11,111 |   |   |   | 33,333 |   |
| Notes payable issued for intangibles expensed             |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
|  as research and development                         |   |                                      | —  |   |                                                          |   | — |   |   |   | 150,000 |   |
| Warrants issued for services                              |   |                                      | —  |   |                                                          |   | — |   |   |   | 567,036 |   |
| Warrants issued for debt guarantees                       |   |                                      | —  |   |                                                          |   | — |   |   |   | 355,197 |   |
| Warrants issued for interest                              |   |                                      | —  |   |                                                          |   | — |   |   |   | 710,862 |   |
| Warrants issued for interest -related parties             |   |                                      | —  |   |                                                          |   | — |   |   |   | 317,100 |   |
| Warrants issued for debt extinguishment                   |   |                                      | —  |   |                                                          |   | — |   |   |   | 360,007 |   |
| Warrants issued for debt extinguishment-related parties   |   |                                      | —  |   |                                                          |   | — |   |   |   | 26,828 |   |
| Warrants issued for debt issuance cost                    |   |                                      | —  |   |                                                          |   | — |   |   |   | 12,834 |   |
| Warrants issued for early warrant exercise incentive      |   |                                      | —  |   |                                                          |   | — |   |   |   | 2,727,103 |   |
| Units issued for interest                                 |   |                                      | —  |   |                                                          |   |   |   |   |   | 8,700 |   |
| Units issued for interest-debt extinguisment              |   |                                      | —  |   |                                                          |   | 870,981 |   |   |   | 870,981 |   |
| Amortization of note payable-original issue discount      |   |                                      | —  |   |                                                          |   | — |   |   |   | 152,247 |   |
| Amortization of note payable-related parties original     |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
|  issue discount                                      |   |                                      | —  |   |                                                          |   | — |   |   |   | 142,964 |   |
| Amortization of convertible debt-original issue discount  |   |                                      | —  |   |                                                          |   | — |   |   |   | 1,146,587 |   |
| Amortization of convertible debt-related parties original |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
|  issue discount                                      |   |                                      | —  |   |                                                          |   | — |   |   |   | 1,194,132 |   |
| Amortization of debt issuance costs                       |   |                                      | 29,418   |   |                                                          |   | 31,400 |   |   |   | 1,921,990 |   |
| Amortization of debt issuance costs-related parties       |   |                                      | 115,500  |   |                                                          |   | 46,443 |   |   |   | 910,405 |   |
| Bargain conversion option added to note payable-          |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
| related parties for debt extinguishment                   |   |                                      | —  |   |                                                          |   | — |   |   |   | 48,214 |   |
| Write-off debt issuance cost for debt extinguishment      |   |                                      | —  |   |                                                          |   | — |   |   |   | 42,797 |   |
| Write-off of deferred offering cost                       |   |                                      | —  |   |                                                          |   | — |   |   |   | 59,696 |   |
| License rights expensed as research and development,      |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
| paid by issuance of common stock to CS Medical            |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
| Technologies, LLC                                         |   |                                      | —  |   |                                                          |   | — |   |   |   | 475,000 |   |
| License rights expensed as research and development,      |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
| paid by issuance of common stock to Profile, LLC          |   |                                      | —  |   |                                                          |   | — |   |   |   | 1,713,600 |   |
| Changes in operating assets and liabilities:              |   |                                      |     |   |                                                          |   |   |   |   |   |   |   |
| Other current assets                                      |   |                                      | 28,320   |   |                                                          |   | (70,746 | ) |   |   | (50,933 | ) |
| Accounts payable                                          |   |                                      | 93,881   |   |                                                          |   | (155,245 | ) |   |   | 738,519 |   |
| Accrued development expense                               |   |                                      | —  |   |                                                          |   | (15,000 | ) |   |   | 2,065,385 |   |
| Accrued expenses                                          |   |                                      | (31,886  | )      |                                                          |   | 24,889 |   |   |   | 841,402 |   |
| Net cash used in operating activities                     |   |                                      | (254,986 | )      |                                                          |   | (759,135 | ) |   |   | (13,883,296 | ) |

----

|                                                   |   | Three Months EndedMarch 31 |     |   | Period from August 17, 1999 (inception) to |   |
|--------------------------------------------------------|--------|-------------------------------------------|----------|--------|---------------------------------------------------------------------|--------|
|                                                   |   | 2011                                      |     |   | 2010                                                                |   |   | March 31, 2011 |   |
| Cash flows from investing activities:                  |   |                                      |     |   |                                                                |   |   |   |   |
| Purchases of equipment and furniture                   |   |                                      | —  |   |                                                                |   | — |   |   |   | (36,767 | ) |
| Deposit into a restricted cash account                 |   |                                      | —  |   |                                                                |   | — |   |   |   | (44,214 | ) |
| Withdrawal from a restricted cash account              |   |                                      | —  |   |                                                                |   | — |   |   |   | 44,214 |   |
| Net cash used in investing activities                  |   |                                      | —  |   |                                                                |   | — |   |   |   | (36,767 | ) |
|                                                   |   |                                      |     |   |                                                                |   |   |   |   |   |   |   |
| Cash flows from financing activities:                  |   |                                      |     |   |                                                                |   |   |   |   |   |   |   |
| Proceeds of note payable, bank                         |   |                                      | —  |   |                                                                |   | — |   |   |   | 600,000 |   |
| Payments of note payable, bank                         |   |                                      | —  |   |                                                                |   | — |   |   |   | (1,300,000 | ) |
| Proceeds of notes payable                              |   |                                      | —  |   |                                                                |   | — |   |   |   | 903,845 |   |
| Payment of notes payable                               |   |                                      | (89,902  | )      |                                                                |   | (24,865 | ) |   |   | (1,632,633 | ) |
| Proceeds of notes payable - related parties            |   |                                      | —  |   |                                                                |   | — |   |   |   | 1,056,738 |   |
| Payments of notes payable - related parties            |   |                                      | —  |   |                                                                |   | — |   |   |   | (282,800 | ) |
| Proceeds from long-term notes payable and bank debt    |   |                                      | —  |   |                                                                |   | — |   |   |   | 4,207,362 |   |
| Proceeds from long-term notes payable, related parties |   |                                      | —  |   |                                                                |   | — |   |   |   | 1,363,500 |   |
| Payments on long-term bank debt                        |   |                                      | —  |   |                                                                |   | — |   |   |   | (600,000 | ) |
| Net proceeds from warrants                             |   |                                      | —  |   |                                                                |   | — |   |   |   | 104,500 |   |
| Proceeds from exercise of warrants                     |   |                                      | —  |   |                                                                |   | 321,761 |   |   |   | 2,223,788 |   |
| Payments for debt issuance costs                       |   |                                      | —  |   |                                                                |   | — |   |   |   | (766,227 | ) |
| Payment for rescission of common stock                 |   |                                      | —  |   |                                                                |   | — |   |   |   | (100,000 | ) |
| Payments for offering expenses                         |   |                                      | —  |   |                                                                |   | — |   |   |   | (651,962 | ) |
| Cost of reverse merger                                 |   |                                      | —  |   |                                                                |   | — |   |   |   | (162,556 | ) |
| Net proceeds from issuance of common stock             |   |                                      | —  |   |                                                                |   | — |   |   |   | 9,030,756 |   |
| Net cash provided by (used in) financing activities    |   |                                      | (89,902  | )      |                                                                |   | 296,896 |   |   |   | 13,994,311 |   |
| Net increase (decrease) in cash                        |   |                                      | (344,888 | )      |                                                                |   | (462,239 | ) |   |   | 74,248 |   |
| Cash, beginning of the period                          |   |                                      | 419,136  |   |                                                                |   | 1,000,874 |   |   |   | — |   |
| Cash, end of the period                                |   | $                                         | 74,248   |   |                                                                | $      | 538,635 |   |   | $ | 74,248 |   |

----

|                                                               |   | Three Months EndedMarch 31 |    |   | Period from August 17, 1999 (inception) to |   |
|--------------------------------------------------------------------|--------|-------------------------------------------|---------|--------|----------------------------------------------------------------|--------|
|                                                               |   | 2011                                      |    |   | 2010                                                           |   |   | March 31, 2011 |   |
| Supplemental cash flow information:                                |   |                                      |    |   |                                                           |   |   |   |   |
| Cash paid for interest                                             |   | $                                         | 17,545  |   |                                                           | $      | 21,269 |   |   | $ | 936,298 |   |
| Non-cash investing and financing activities:                       |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| Offering costs included in accounts payable                        |   |                                      | — |   |                                                           |   | — |   |   |   | 371,808 |   |
| Offering costs included in accrued expenses                        |   |                                      | — |   |                                                           |   | — |   |   |   | — |   |
| Deferred offering costs offset against gross proceeds              |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| of offering                                                        |   |                                      | — |   |                                                           |   | — |   |   |   | 823,078 |   |
| Debt issuance costs included in accounts payable                   |   |                                      | 18,000  |   |                                                           |   | — |   |   |   | 132,156 |   |
| Warrants issued pursuant to notes payable                          |   |                                      | — |   |                                                           |   | — |   |   |   | 467,191 |   |
| Warrants issued for debt issuance costs                            |   |                                      | — |   |                                                           |   | — |   |   |   | 298,021 |   |
| Warrants issued in lieu of cash for accrued expenses               |   |                                      | — |   |                                                           |   | — |   |   |   | 1,250 |   |
| Warrant exercise cost paid  in lieu of cash for services |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
|  rendered-related party                                       |   |                                      | — |   |                                                           |   | — |   |   |   | 11,250 |   |
| Prepaid expenses financed by note payable                          |   |                                      | — |   |                                                           |   | — |   |   |   | 246,871 |   |
| Issuance of note payable for redemption of common stock            |   |                                      | — |   |                                                           |   | — |   |   |   | 650,000 |   |
| Notes payable-related party tendered for warrant exercise          |   |                                      | — |   |                                                           |   | — |   |   |   | 672,000 |   |
| Notes payable tendered for warrant exercise                        |   |                                      | — |   |                                                           |   | — |   |   |   | 405,982 |   |
| Conversion of notes payable to units                               |   |                                      | — |   |                                                           |   | 600,000 |   |   |   | 600,000 |   |
| Conversion of accounts payable to note payable                     |   |                                      | — |   |                                                           |   | — |   |   |   | 253,906 |   |
| Conversion of accrued expenses to note payable                     |   |                                      | — |   |                                                           |   | — |   |   |   | 13,569 |   |
| Convertible debt issued in lieu of cash for                        |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| accrued expenses                                                   |   |                                      | — |   |                                                           |   | — |   |   |   | 31,413 |   |
| Convertible debt issued as debt issuance costs related to          |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| guarantee of long-term debt (recorded as a                         |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| beneficial conversion in additional paid-in capital)               |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| applied to accounts payable                                        |   |                                      | — |   |                                                           |   | — |   |   |   | 733,334 |   |
| Convertible debt issued in lieu of cash for                        |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| accounts payable                                                   |   |                                      | 65,698  |   |                                                           |   | — |   |   |   | 65,698 |   |
| Conversion of convertible debt to units                            |   |                                      | — |   |                                                           |   | — |   |   |   | 1,638,750 |   |
| Conversion of accrued expenses to equity                           |   |                                      | 103,154 |   |                                                           |   | 97,546 |   |   |   | 523,261 |   |
| Conversion of convertible debt-related parties to units            |   |                                      | — |   |                                                           |   | — |   |   |   | 1,323,334 |   |
| Conversion of convertible debt-related parties to                  |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| common stock                                                       |   |                                      | — |   |                                                           |   | — |   |   |   | — |   |
| Conversion of notes payable, related parties into                  |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| convertible debentures                                             |   |                                      | — |   |                                                           |   | — |   |   |   | 200,000 |   |
| Common stock issued in lieu of cash for                            |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| accrued expenses                                                   |   |                                      | 12,500  |   |                                                           |   | — |   |   |   | 271,553 |   |
| Common stock issued in lieu of cash for                            |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| accounts payable                                                   |   |                                      | 100,000 |   |                                                           |   | — |   |   |   | 222,291 |   |
| Common stock issued in lieu of cash for                            |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| accrued development cost                                           |   |                                      | — |   |                                                           |   | 1,565,385 |   |   |   | 2,065,385 |   |
| Common stock issued in lieu of cash for                            |   |                                      |    |   |                                                           |   |   |   |   |   |   |   |
| notes payable-related parties                                      |   |                                      | — |   |                                                           |   | — |   |   |   | 10,300 |   |
| Common stock issued for debt issuance cost                         |   |                                      | — |   |                                                           |   | — |   |   |   | 301,230 |   |
| Common stock issued pursuant to notes payable                      |   |                                      | 126,667 |   |                                                           |   | 22,222 |   |   |   | 642,267 |   |
| Deposits applied to note payable and accrued interest              |   |                                      | — |   |                                                           |   | — |   |   |   | 142,696 |   |
| Deposits applied to accounts payable                               |   |                                      | — |   |                                                           |   | — |   |   |   | 45,782 |   |
| Assumption of liabilities in the Profile, LLC transaction          |   |                                      | — |   |                                                           |   | — |   |   |   | 25,000 |   |
| Proceeds from sale of furniture and equipment                      |   |                                      | — |   |                                                           |   | — |   |   |   | 2,200 |   |
| Deposits applied to accrued expenses                               |   |                                      | — |   |                                                           |   | — |   |   |   | 1,076 |   |
| Deferred offering costs included in accrued expenses               |   |                                      | — |   |                                                           |   | 46,214 |   |   |   | — |   |

----

----

|   | (a) | Description of Business, Development Stage Activities |
|--------|-----|-------------------------------------------------------|

|   | (b) | Basis of Presentation |
|--------|-----|-----------------------|

----

|   | (c) | Net Loss Per Common Share |
|--------|-----|---------------------------|

|   | (d) | Stock-Based Compensation |
|--------|-----|--------------------------|

| Risk-free Interest Rate          |   |       | 1.82   | %      |
|----------------------------------|--------|------------|--------|--------|
|                             |   |       |   |   |
| Expected Life of Options Granted |   | 4.02 years |   |
|                             |   |       |   |   |
| Expected Volatility              |   |       | 131.2  | %      |
|                             |   |       |   |   |
| Expected Dividend Yield          |   |       | 0      |   |

----

|   | (e) | Warrants |
|--------|-----|----------|

|   | (f) | Debt Issuance Costs |
|--------|-----|---------------------|

|                       |   | March 31,2011 |     |   | December 31,2010 |   |
|----------------------------|--------|--------------------|----------|--------|-----------------------|--------|
| Debt issuance costs, gross |   | $                  | 863,929  |   |                  | $      | 719,262 |   |
| Less amortization          |   |               | (859,780 | )      |                  |   | (714,862 | ) |
|                       |   |               |     |   |                  |   |   |   |
| Debt issuance costs, net   |   | $                  | 4,149    |   |                  | $      | 4,400 |   |

|   | (g) | Going Concern |
|--------|-----|---------------|

----

|                                                                   |   | March 31,2011 |    |   | December 31,2010 |   |
|------------------------------------------------------------------------|--------|--------------------|---------|--------|-----------------------|--------|
| Accrued stock to be issued for loan guarantees – related parties |   | $                  | 115,500 |   |                  | $      | — |   |
| Directors’ fees                                                  |   |               | 19,250  |   |                  |   | 15,000 |   |
| Audit fees                                                             |   |               | 19,145  |   |                  |   | 30,000 |   |
| Accrued interest                                                       |   |               | 11,121  |   |                  |   | 52,897 |   |
| Consulting fees                                                        |   |               | 2,000   |   |                  |   | 1,219 |   |
| Accrued stock to be issued for loan consideration                      |   |               | — |   |                  |   | 60,000 |   |
| Legal fees                                                             |   |               | — |   |                  |   | 15,205 |   |
| Accrued compensation                                                   |   |               | — |   |                  |   | 10,168 |   |
| Other                                                                  |   |               | 1,495   |   |                  |   | 1,854 |   |
|                                                                   |   | $                  | 168,511 |   |                  | $      | 186,343 |   |

----

|                                       |   | Three MonthsEnded March 31,2011 |    |   | Year EndedDecember 31,2010 |   | Three Months Ended March 31, 2011 Activity |
|--------------------------------------------|--------|------------------------------------------------|---------|--------|--------------------------------------|--------|--------------------------------------------------------------------------|
| Short term notes payable:                  |   |                                           |    |   |                                 |   |                                                                     |
| Insurance policy financing                 |   | $                                              | — |   |                                 | $      | 24,902                                                                   |   | Principal was repaid |
| Total notes payable-short term             |   | $                                              | — |   |                                 | $      | 24,902                                                                   |   |   |
|                                       |   |                                           |    |   |                                 |   |                                                                     |   |   |
| Long term notes payable:                   |   |                                           |    |   |                                 |   |                                                                     |   |   |
| Note payable dated June 11, 2010           |   | $                                              | — |   |                                 | $      | 11,018                                                                   |   | Refinanced as convertible debt |
| Note payable dated June 11, 2010           |   |                                           | — |   |                                 |   | 65,000                                                                   |   | Principal was repaid |
| Note payable dated September 23, 2009      |   |                                           | — |   |                                 |   | 300,000                                                                  |   | Refinanced as convertible debt |
| Total notes payable-long term              |   | $                                              | — |   |                                 | $      | 376,018                                                                  |   |   |
|                                       |   |                                           |    |   |                                 |   |                                                                     |   |   |
| Long term convertible notes payable:       |   |                                           |    |   |                                 |   |                                                                     |   |   |
| Note payable dated February 8, 2011        |   | $                                              | 300,000 |   |                                 | $      | —                                                                  |   | Refinancing of long term note payable |
| Note payable dated February 10, 2011       |   |                                           | 65,698  |   |                                 |   | —                                                                  |   | Note issued in lieu of cash for accounts payable |
| Note payable dated February 11, 2011       |   |                                           | 11,018  |   |                                 |   | —                                                                  |   | Refinancing of long term note payable |
| Total convertible notes payable, long term |   | $                                              | 376,716 |   |                                 | $      | —                                                                  |   |   |

----

----

----

----

----

----

----

----

|   | · | $500,000 in sales |
|--------|--------|-------------------|

|   | · | The raising of $5 million in new funding |
|--------|--------|------------------------------------------|

|   | · | The execution of a corporate partner agreement |
|--------|--------|------------------------------------------------|

|   | · | The filing of three new patent applications |
|--------|--------|---------------------------------------------|

|   | · | 25% vesting - $500,000 in sales |
|--------|--------|---------------------------------|

----

|   | · | 30% vesting - The raising of $5 million in new funding |
|--------|--------|--------------------------------------------------------|

|   | · | 30% vesting - The execution of a corporate partner agreement |
|--------|--------|--------------------------------------------------------------|

|   | · | 15% vesting - The filing of three new patent applications |
|--------|--------|-----------------------------------------------------------|

| Exhibit No.             |         | Description                                                                                                                                                                               |
|-------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |         |                                                                                                                                                                                      |
| 10.1   * |         | Modification/Amendment Agreement to Crown Bank Loan dated March 28, 2011.                                                                                                                 |
|                    |         |                                                                                                                                                                                      |
| 10.2   * |         | Form of Loan Guarantor Compensation Letter Agreement effective March 28, 2011.                                                                                                            |
|                    |         |                                                                                                                                                                                      |
| 31.1   * |         | Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Sarbanes-Oxley Act of 2002.                                                                      |
|                    |         |                                                                                                                                                                                      |
| 31.2   * |         | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Sarbanes-Oxley Act of 2002.                                                                          |
|                    |         |                                                                                                                                                                                      |
| 32.1   * |    | Certification of Chief Executive Officer and Chief Financial Officer pursuant to pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |

----

----

|                         | ProUroCare Medical Inc.                   |
|------------------------------|-------------------------------------------|
|                         |                                      |   |
| Date:  May 9, 2011 | By:                                       | /s/ Richard C. Carlson |
|                         | Name:  Richard C. Carlson       |
|                         | Title:  Chief Executive Officer |

| Date:  May 9, 2011 | By:                                       | /s/ Richard Thon |
|------------------------------|-------------------------------------------|------------------|
|                         | Name:  Richard Thon             |
|                         | Title:  Chief Financial Officer |

----

| Exhibit No.             |         | Description                                                                                                                                                                               |
|-------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |         |                                                                                                                                                                                      |
| 10.1   * |         | Modification/Amendment Agreement to Crown Bank Loan dated March 28, 2011.                                                                                                                 |
|                    |         |                                                                                                                                                                                      |
| 10.2   * |         | Form of Loan Guarantor Compensation Letter Agreement effective March 28, 2011.                                                                                                            |
|                    |         |                                                                                                                                                                                      |
| 31.1   * |         | Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Sarbanes-Oxley Act of 2002.                                                                      |
|                    |         |                                                                                                                                                                                      |
| 31.2   * |         | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Sarbanes-Oxley Act of 2002.                                                                          |
|                    |         |                                                                                                                                                                                      |
| 32.1   * |    | Certification of Chief Executive Officer and Chief Financial Officer pursuant to pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |

----

----