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| Nevada                                                        |   | 26-1919261                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) |   | (I.R.S. Employer Identification No.) |

| 51 Berkshire StreetSwampscott, MA        |   | 01907      |
|------------------------------------------|--------|------------|
| (Address of principal executive offices) |   | (Zip Code) |

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

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| PART I                            |                                                                                                                |     | PAGE   |   |
|-----------------------------------|---------------------------------------------------------------------------------------------------------------------|----------|--------|--------|
| Item 1.                           | Business.                                                                                                           |     | 4      |   |
| Item 1A.                          | Risk Factors.                                                                                                       |     | 25     |   |
| Item 1B.                          | Unresolved Staff Comments.                                                                                          |     | 44     |   |
| Item 2.                           | Properties.                                                                                                         |     | 44     |   |
| Item 3.                           | Legal Proceedings.                                                                                             |     | 44     |   |
| Item 4.                           | (Removed and Reserved).                                                                                             |     | 44     |   |
|                              |                                                                                                                |     |   |   |
| PART II                           |                                                                                                                |     |   |   |
|                              |                                                                                                                |     |   |   |
| Item 5.                           | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. |     | 45     |   |
| Item 6.                           | Selected Financial Data.                                                                                            |     | 46     |   |
| Item 7.                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations.                        |     | 46     |   |
| Item 7A.                          | Quantitative and Qualitative Disclosures about Market Risk.                                                         |     | 56     |   |
| Item 8.                           | Financial Statements and Supplementary Data.                                                                        |     | 56     |   |
| Item 9.                           | Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.                               |     | 56     |   |
| Item 9A.                          | Controls and Procedures.                                                                                            |     | 56     |   |
| Item 9B.                          | Other Information.                                                                                                  |     | 57     |   |
|                              |                                                                                                                |     |   |
| PART III                          |                                                                                                                |     |   |
|                              |                                                                                                                |     |   |   |
| Item 10.                          | Directors, Executive Officers and Corporate Governance.                                                             |     | 59     |   |
| Item 11.                          | Executive Compensation.                                                                                             |     | 61     |   |
| Item 12.                          | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.                     |     | 65     |   |
| Item 13.                          | Certain Relationships and Related Transactions, and Director Independence.                                          |     | 67     |   |
| Item 14.                          | Principal Accountant Fees and Services.                                                                             |     |   |   |
|                              |                                                                                                                |     |   |   |
| PART IV                           |                                                                                                                |     |   |   |
|                              |                                                                                                                |     |   |   |
| Item15.                           | Exhibits, Financial Statement Schedules.                                                                            |     | 68     |   |
|                              |                                                                                                                |     |   |
| SIGNATURES                        |                                                                                                                | 69  |   |
|                              |                                                                                                                |     |   |
| CONSOLIDATED FINANCIAL STATEMENTS |                                                                                                                | 71  |   |

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|     ·       | Aricept, marketed by Pfizer, Inc. and Eisai Company, Ltd.; |
|--------------------------------------------------------------------|------------------------------------------------------------|

|     ·       | Exelon, marketed by Novartis AG; |
|--------------------------------------------------------------------|----------------------------------|

|     ·       | Reminyl, also known as Razadyne, marketed by Shire Pharmaceuticals Group plc and Janssen Pharmaceutical Products, LP; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|

|     ·       | Cognex, marketed by Sciele Pharmaceuticals Corp.; and |
|--------------------------------------------------------------------|-------------------------------------------------------|

|     ·       | Namenda, marketed by Forest Pharmaceuticals, Inc. |
|--------------------------------------------------------------------|---------------------------------------------------|

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| Trial Name/ Clinical Phase                             |   | EnrollmentCriteria                                                                                                                                                             |   | Number ofClinical Sites            |   | Number ofParticipants                                          |   | TrialDuration |   | Status                                                                                                                            |
|--------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|----------------------------------------------------------------|--------|---------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|
| ALADDIN 301 / Phase II   |   | Men and women aged 60 years or older with mild to moderate Alzheimer’s disease; patients were required to receive AChEIs during and for at least 120 days prior to trial |   | 62 in the United States and Canada |   | 612 recruited, 370 included in data set due to discontinuation |   | 56 weeks      |   | Discontinued on October 18, 2006. Approximately 369 patients at 24 weeks, 193 patients at 32/34 weeks and 89 patients at 40 weeks |
|                                                   |   |                                                                                                                                                                           |   |                               |   |                                                           |   |          |   |                                                                                                                              |
| ALADDIN I / 103 Phase II                               |   | Women aged 65 years or older with mild to moderate Alzheimer’s disease; patients were allowed, but not required, to receive AChEIs during and prior to trial             |   | 5 in the United States             |   | 108                                                            |   | 48 weeks      |   | Completed                                                                                                                         |
|                                                   |   |                                                                                                                                                                           |   |                               |   |                                                           |   |          |   |                                                                                                                              |
| ALADDIN II / 104 Phase II                              |   | Men aged 65 years or older with mild to moderate Alzheimer’s disease; patients were allowed, but not required, to receive AChEIs during and prior to trial               |   | 17 in the United States            |   | 119                                                            |   | 48 weeks      |   | Completed                                                                                                                         |
|                                                   |   |                                                                                                                                                                           |   |                               |   |                                                           |   |          |   |                                                                                                                              |
| ALADDIN 105 / Phase I                                  |   | Healthy women aged 45 to 70 years and men aged 50 to 70 years                                                                                                                  |   | 1 in the United States             |   | 50                                                             |   | 24 weeks      |   | Completed                                                                                                                         |

|     ·       | The Alzheimer’s Disease Assessment Scale-Cognitive Subscale, or ADAS-cog.  ADAS-cog is a test of memory and cognition that is designed to measure changes in Alzheimer’s disease subjects that might occur in response to a pharmacological intervention, or the action of a given drug. An increasing score on this measure (over time, compared to the baseline score) indicates cognitive decline, while a decreasing score (over time, compared to the baseline score) indicates cognitive improvement; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | The Alzheimer’s Disease Cooperative Study-Clinical Global Impression of Change, or ADCS-CGIC.  ADCS-CGIC is a global measure of a subject’s change in condition from baseline in Alzheimer’s disease. The score is based on information gained from interviews with the subject and the subject’s caregiver; and |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | Alzheimer’s Disease Cooperative Study-Activities of Daily Living Inventory, or ADCS-ADL.  ADCS-ADL is a comprehensive rating scale designed to measure a subject’s capacity to perform activities of daily living, including ability to eat, dress, bathe, telephone, travel, shop and perform other household chores. The score is based on interviews of the subject’s caregiver. An increasing score on this measure  (over time, compared to the baseline score) indicates additional capacity to perform activities of daily living, while a decreasing score indicates less capacity. |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|     ·       | a low dose leuprolide acetate group; 11.25 mg of leuprolide every 12 weeks; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------|

|     ·       | a high dose leuprolide acetate group; 22.5 mg of leuprolide every 12 weeks; and |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------|

|     ·       | a placebo group. |
|--------------------------------------------------------------------|------------------|

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|     ·       | a low dose leuprolide acetate group; 22.5 mg of leuprolide per 12 weeks; 39 men |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------|

|     ·       | a high dose leuprolide acetate group; 33.75 mg of leuprolide per 12 weeks; 42 men and |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------|

|     ·       | a placebo group; 38 men. |
|--------------------------------------------------------------------|--------------------------|

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|     ·       | the progress and results of clinical trials of our lead candidate, VP4896, for mild to moderate Alzheimer’s disease; |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|

|     ·       | the costs of establishing sales and marketing functions, outsourcing  manufacturing needs and obtaining pre-launch inventory of VP4896; |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the scope, progress, results and cost of pre-clinical development and laboratory testing and clinical trials for our other product candidates; |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the costs, timing and outcome of regulatory review of VP4896 for mild to moderate Alzheimer’s disease and of our other product candidates; |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the number and development requirements of other product candidates; |
|--------------------------------------------------------------------|----------------------------------------------------------------------|

|     ·       | the costs of preparing, filing and prosecuting patent applications and maintaining, enforcing and defending intellectual property-related claims; |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | our success in entering into collaboration agreements with leading pharmaceutical and biotechnology companies to assist in furthering the development of product candidates; and |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the timing, receipt and amount of sales or royalties, if any, from VP4896 and other potential products. |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|

----

|     ·       | successful patient enrollment in, and completion of, clinical trials; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------|

|     ·      | receipt of marketing approvals from the FDA and similar foreign regulatory authorities; |
|--------------------------------------------------------------|-----------------------------------------------------------------------------------------|

|     ·       | obtaining commercial quantities of leuprolide acetate, the active ingredient of VP4896; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------|

|     ·       | obtaining commercial quantities of VP4896 from our supplier, Durect Corporation; |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------|

|     ·       | establishing a sales and marketing infrastructure to market and sell VP4896 in the United States and internationally, whether alone or in collaboration with others; and |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | acceptance of the product by patients, the medical community and third party payors. |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------|

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|     ·       | regulatory authorities, institutional review boards, or ethics committees may not authorize us to commence a clinical trial or conduct a clinical trial at a prospective trial site; |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·      | our clinical trials may produce negative or inconclusive results, and we may decide, or regulatory authorities may require us, to conduct additional clinical trials or we may abandon projects that we expect to be promising; |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | enrollment in our clinical trials may be slower than we currently anticipate, resulting in significant delays. Additionally, participants may drop out of our clinical trials at a higher rate than we anticipate; |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | our third party contractors may fail to comply with regulatory requirements or meet their contractual obligations to us in a timely manner; |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | we might have to suspend or terminate our clinical trials if the participants are being exposed to unacceptable health risks; |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|

|     ·       | regulatory authorities, institutional review boards, or ethics committees may require that we hold, suspend or terminate clinical research for various reasons, including noncompliance with regulatory requirements; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the cost of our clinical trials may be greater than we anticipate; |
|--------------------------------------------------------------------|--------------------------------------------------------------------|

|     ·       | the supply or quality of our product candidates or other materials necessary to conduct our clinical trials may be insufficient or inadequate; and |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the effects of our product candidates may not achieve the desired effects or may include undesirable side effects or the product candidates may have other unexpected characteristics. |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·      | be delayed in obtaining marketing approval for our product candidates; |
|--------------------------------------------------------------|------------------------------------------------------------------------|

|     ·       | not be able to obtain marketing approval; or |
|--------------------------------------------------------------------|----------------------------------------------|

|     ·       | obtain approval for indications that are not as broad as we intended. |
|--------------------------------------------------------------------|-----------------------------------------------------------------------|

----

|     ·       | reliance on the third party for regulatory compliance and quality assurance; |
|--------------------------------------------------------------------|------------------------------------------------------------------------------|

|     ·       | the possible breach of the manufacturing agreement by the third party because of factors beyond our control; and |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|

|     ·       | the possible termination or non-renewal of the agreement by the third party, based on its own business priorities, at a time that is costly or inconvenient for us. |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|     ·       | We do not own or license composition of matter patents covering leuprolide acetate, the active pharmaceutical ingredient of VP4896, or methods of making leuprolide acetate. Moreover, the active ingredient that we are testing in our most advanced preclinical programs is also leuprolide acetate. Leuprolide acetate is currently marketed for a number of other indications. As a result, competitors can offer and sell leuprolide acetate products so long as they do not infringe, or contribute to the infringement of, or actively induce infringement of, any patents or other proprietary rights that we or others may have the rights to enforce; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | The principal patent protection that covers, or that we expect will cover, the use of VP4896 to treat Alzheimer’s disease and leuprolide acetate to treat other indications stems from a method of use patent and patent applications. This type of patent only protects specified methods of using specified products according to the patent claims. This type of patent does not limit a competitor from making and marketing a product that is identical to our product for an indication that is outside of the patented method. Moreover, physicians may prescribe such a competitive identical product for off label indications that are covered by the applicable patents. In particular, leuprolide acetate, the active pharmaceutical ingredient in VP4896 and the drug being tested by us in our most advanced preclinical programs, is currently marketed for a number of other indications. Although off label prescriptions may infringe or contribute to or actively induce infringement of method of use patents, the practice is common and such infringement is difficult to prevent or prosecute. Consequently, VP4896, if approved, could face competition from leuprolide acetate products that are already on the market, or may later be approved, through off label usage of these products to treat Alzheimer’s disease that may be difficult or impossible for us to prevent because our primary patent protection is limited to method of use claims; and |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|     ·       | We have not applied for method of use patent protection outside of the United States and Canada for use of VP4896 to treat Alzheimer’s disease. As a result, there is a significant risk that we will face early generic competition for VP4896 for the treatment of Alzheimer’s disease in international markets. This risk may be increased if competitors are able to develop formulations of leuprolide acetate, such as other polymeric implants, that are as effective as VP4896 may prove to be or if competitors can demonstrate that commercially available leuprolide acetate can be administered by injection in a manner that is as effective as VP4896 may prove to be. |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|     ·       | restrictions on such products, manufacturers or manufacturing processes; |
|--------------------------------------------------------------------|--------------------------------------------------------------------------|

|     ·       | warning letters; |
|--------------------------------------------------------------------|------------------|

|     ·       | withdrawal of the products from the market; |
|--------------------------------------------------------------------|---------------------------------------------|

|     ·       | refusal to approve pending applications or supplements to approved applications that we submit; |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|

|     ·       | recall; |
|--------------------------------------------------------------------|---------|

----

|     ·       | fines; |
|--------------------------------------------------------------------|--------|

|     ·       | suspension or withdrawal of regulatory approvals; |
|--------------------------------------------------------------------|---------------------------------------------------|

|     ·      | refusal to permit the import or export of our products; |
|--------------------------------------------------------------|---------------------------------------------------------|

|     ·       | product seizure; and |
|--------------------------------------------------------------------|----------------------|

|     ·       | injunctions or the imposition of civil or criminal penalties. |
|--------------------------------------------------------------------|---------------------------------------------------------------|

|     ·       | the prevalence and severity of any side effects; |
|--------------------------------------------------------------------|--------------------------------------------------|

|     ·       | the efficacy and potential advantages over alternative treatments; |
|--------------------------------------------------------------------|--------------------------------------------------------------------|

|     ·       | the ability to offer our product candidates for sale at competitive prices; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------|

|     ·       | relative convenience and ease of administration; |
|--------------------------------------------------------------------|--------------------------------------------------|

|     ·       | the willingness of the target patient population to try new therapies and of physicians to prescribe these therapies; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|

|     ·       | the strength of marketing and distribution support; and |
|--------------------------------------------------------------------|---------------------------------------------------------|

|     ·       | sufficient third party coverage or reimbursement. |
|--------------------------------------------------------------------|---------------------------------------------------|

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|     ·      | decreased demand for any product candidates or products that we may develop; |
|--------------------------------------------------------------|------------------------------------------------------------------------------|

|     ·       | injury to our reputation; |
|--------------------------------------------------------------------|---------------------------|

|     ·       | withdrawal of clinical trial participants; |
|--------------------------------------------------------------------|--------------------------------------------|

|     ·       | costs to defend the related litigation; |
|--------------------------------------------------------------------|-----------------------------------------|

|     ·       | substantial monetary awards to trial participants or patients; |
|--------------------------------------------------------------------|----------------------------------------------------------------|

|     ·      | loss of revenue; and |
|--------------------------------------------------------------|----------------------|

|     ·       | the inability to commercialize any products that we may develop. |
|--------------------------------------------------------------------|------------------------------------------------------------------|

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|     ·       | the federal Medicare and Medicaid Anti-Kickback law, which prohibits persons from knowingly and willfully soliciting, offering, receiving or providing remuneration, directly or indirectly, in cash or in kind, to induce either the referral of an individual, or furnishing or arranging for a good or service, for which payment may be made under federal healthcare programs such as the Medicare and Medicaid Programs; |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | other Medicare laws, regulations, rules, manual provisions and policies that prescribe the requirements for coverage and payment for services performed by our customers, including the amount of such payment; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the federal False Claims Act, which imposes civil and criminal liability on individuals and entities who submit, or cause to be submitted, false or fraudulent claims for payment to the government; |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the federal False Statements Act, which prohibits knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false statement in connection with the delivery of or payment for healthcare benefits, items or services; and |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | state and foreign law equivalents of the foregoing. |
|--------------------------------------------------------------------|-----------------------------------------------------|

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|          |   | High   |   |   | Low    |   |
|---------------|--------|--------|--------|--------|--------|--------|
| 2010          |   |   |   |   |   |   |
| December 31   |   | $      | 1.47   |   |   |   | 0.28 |   |
| September 30  |   | $      | 1.90   |   |   |   | 0.90 |   |
| June 30       |   | $      | 1.30   |   |   |   | 0.40 |   |
| March 31      |   | $      | 1.00   |   |   |   | 0.20 |   |
|          |   |   |   |   |   |   |   |   |
| 2009          |   |   |   |   |   |   |   |   |
| December 31   |   | $      | --     |   |   |   | -- |   |
| September 30  |   | $      | --     |   |   |   | -- |   |
| June 30  |   | $      | --     |   |   |   | -- |   |
| March 31      |   | $      | --     |   |   |   | -- |   |

| # of Shares |       |   | Exercise Price |   | Expiration Date   |
|-------------|------------|--------|----------------|--------|-------------------|
|        |       |   |           |   |              |
|        | 3,095,800  |   |           |   | $  0.10 |   | December 31, 2011 |
|        | 54,800     |   |           |   | $  0.50 |   | December 31, 2011 |
|        | 2,149,100  |   |           |   | $0.001            |   | August 31, 2016 |
|        | 844,400    |   |           |   | $  0.22 |   | August 31, 2016 |
|        | 3,589,500  |   |           |   | $0.001            |   | July 29, 2017 |
|        | 820,800    |   |           |   | $  1.52 |   | September 15, 2015 |
|        | 100,000    |   |           |   | $  0.30 |   | August 31, 2015 |
|        | 10,654,400 |   |           |   |              |   |   |

----

----

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|     ·       | the scope, rate of progress and expense of our clinical trials and other research and development  activities; |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|

|     ·       | future clinical trial results; |
|--------------------------------------------------------------------|--------------------------------|

|     ·       | the expense, timing and outcome of seeking regulatory approvals; |
|--------------------------------------------------------------------|------------------------------------------------------------------|

|     ·       | the expense of establishing clinical and commercial supplies of our product candidates and any products that we may develop; |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|

|     ·       | the effect of competing technological and market developments; and |
|--------------------------------------------------------------------|--------------------------------------------------------------------|

|     ·       | the expense of filing, prosecuting, defending and enforcing any patent claims and other intellectual  property rights. |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|

|     ·       | costs of services performed by contract research organizations and clinical sites in conjunction with clinical trials; |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|

|     ·       | costs of services performed by contract manufacturers in conjunction with the production of clinical trial materials; and |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|

|     ·       | professional service fees and expenses. |
|--------------------------------------------------------------------|-----------------------------------------|

----

----

|     ·       | salaries and related expenses for personnel engaged in research and development activities; |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------|

|     ·       | fees paid to contract research organizations and clinical sites in conjunction with clinical trials; |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|

|     ·       | fees paid to research organizations in conjunction with preclinical studies; |
|--------------------------------------------------------------------|------------------------------------------------------------------------------|

|     ·       | costs of materials used in research and development; |
|--------------------------------------------------------------------|------------------------------------------------------|

|     ·       | consulting and sponsored research fees paid to third parties; |
|--------------------------------------------------------------------|---------------------------------------------------------------|

|     ·       | fees paid to external legal counsel and third parties filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights; and |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | depreciation of capital assets used to discover and develop our product candidates. |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------|

|     ·       | initiation of the Phase IIB clinical trials for Memryte for the treatment of mild to moderate Alzheimer’s disease in women; |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|

|     ·       | initiation of  the Phase III pivotal trials for Memrtye for the treatment of mild to moderate Alzheimer’s disease in women; |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | manufacture of clinical trial materials for these trials and continued development of the production process for Memryte; and |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|

|     ·       | increased pre-clinical testing and clinical trials of its other oncology drug candidates. |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------|

----

|     ·       | the number of patients who participate in the trials; |
|--------------------------------------------------------------------|-------------------------------------------------------|

|     ·       | the number of sites included in the trials; |
|--------------------------------------------------------------------|---------------------------------------------|

|     ·       | the length of time required to enroll trial participants; |
|--------------------------------------------------------------------|-----------------------------------------------------------|

|     ·       | the duration of the treatment period in the trials; |
|--------------------------------------------------------------------|-----------------------------------------------------|

|     ·       | the effect of regulatory requirements on the trials; |
|--------------------------------------------------------------------|------------------------------------------------------|

|     ·       | the duration of patient follow-up; and |
|--------------------------------------------------------------------|----------------------------------------|

|     ·       | the efficacy and safety profile of the product candidate. |
|--------------------------------------------------------------------|-----------------------------------------------------------|

----

|                                         |   | Year Ended December 31, |
|----------------------------------------------|--------|------------------------------|
|                                         |   | 2010                         |   |   | 2009 |   |
|                                         |   | (Dollars in thousands)       |
| Operating expenses:                          |   |                         |   |   |   |   |   |   |
| Research and development                     |   | $                            | 78 |   |   |   | 132 |   |
| General and administrative                   |   |                         | 1,859 |   |   |   | 1,077 |   |
| Total operating expenses                     |   |                         | 1,937 |   |   |   | 1,209 |   |
| Loss from operations                         |   |                         | (1,937 | ) |   |   | (1,209 | )  |
| Gain on debt restructuring                   |   |                         | 204 |   |   |   | 6,562 |   |
| Interest income (expense), net               |   |                         | (175 | ) |   |   | (366 | ) |
| Interest expense from derivative liability   |   |                         | (2,586 | ) |   |   | - |   |
| Change in fair value of derivative liability |   |                         | 2,250 |   |   |   | - |   |
| Net income (loss)                            |   | $                            | (2,244 | )  |   |   | 4,987 |   |

|                                |   | Year Ended             |   |   |   |   |   |     |   |
|-------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                |   | December 31,           |   |   |   |   |   |     |   |
|                                |   | 2010                   |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                                |   | (Dollars in thousands) |   |
| Research and development costs      |   | $                      | 78     |   |   | $      | 132    |     |   | $ | (54) |   |   |   | (40.9) | % |
| Percent of total operating expenses |   |                   | 4.0    | %      |   |   | 10.90  | %        |   |   |   |   |   |   |   |   |

----

|                                |   | Year Ended             |   |   |   |   |   |     |   |
|-------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                |   | December 31,           |   |   |   |   |   |     |   |
|                                |   | 2010                   |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                                |   | (Dollars in thousands) |   |
|                                |   |                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| General and administrative expenses |   | $                      | 1,859  |   |   | $      | 1,077  |     |   | $ | 782 |   |   |   | 72.6 | % |
| Percent of total operating expenses |   |                   | 96.0   | %      |   |   | 89.1   | %        |   |   |   |   |   |   |   |   |

|                       |   | Year Ended             |   |   |   |   |   |     |   |
|----------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------|--------|
|                       |   | December 31,           |   |   |   |   |   |     |   |
|                       |   | 2010                   |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                       |   | (Dollars in thousands) |   |
| Gain on debt restructuring |   | $                      | 204    |   |   | $      | 6,562  |     |   | $ | (6,358 | ) |   |   |   | (96.9 | ) % |

----

|                  |   | Year Ended             |   |   |   |   |   |     |   |
|-----------------------|--------|------------------------|--------|--------|--------|--------|--------|----------|--------|
|                  |   | December 31,           |   |   |   |   |   |     |   |
|                  |   | 2010                   |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                  |   | (Dollars in thousands) |   |
| Interest expense, net |   | $                      | 175    |   |   | $      | 366    |     |   | $ | (191 | ) |   |   | (52.2 | %) |

|                               |   | Year Ended             |   |   |   |   |   |     |   |
|------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------|--------|
|                               |   | December 31,           |   |   |   |   |   |     |   |
|                               |   | 2010                   |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                               |   | (Dollars in thousands) |   |
| Interest from derivative liability |   | $                      | 2,586  |   |   | $      | -      |     |   | $ | 2,586 |   |   |   | 100.0 | % |

|                                         |   | Year Ended             |   |   |   |   |   |     |   |
|----------------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                         |   | December 31,           |   |   |   |   |   |     |   |
|                                         |   | 2010                   |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                                         |   | (Dollars in thousands) |   |
| Change in fair value of derivative liability |   | $                      | 2,250  |   |   | $      | -      |     |   | $ | 2,250 |   |   |   | 100.0 | % |

----

|              |   | Year Ended             |   |   |   |   |   |     |   |
|-------------------|--------|------------------------|--------|--------|--------|--------|--------|----------|--------|
|              |   | December 31,           |   |   |   |   |   |     |   |
|              |   | 2010                   |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|              |   | (Dollars in thousands) |   |
| Net income (loss) |   | $                      | (2,244 | )      |   | $      | 4,987  |     |   | $ | (7,231 | ) |   |   | (144.7 | %) |

----

----

|     ·       | Stated Value: The stated value per share of the Series C Convertible Preferred Stock is $1,000.00, subject to increase for accrued dividends. |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | Voting Rights:  The holders of the Series C Convertible Preferred Stock are not entitled to vote with the Company’s common stockholders. |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·      | Protective Provisions:  As long as any Series C Convertible Preferred Stock is outstanding, we are prohibited from taking any of the following actions without the consent of a majority of the then outstanding Series C Convertible Preferred Stock: |
|--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | alter or change adversely the powers, preferences or rights given to the Series C Convertible Preferred Stock; |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (ii)   | alter or amend the certificate of designation; |
|------------------|------------------------------------------------|

| (iii)   | authorize or create any class of stock ranking as to dividends or distribution of assets upon a liquidation or otherwise senior to or pari passu with the Series C Convertible Preferred Stock; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | amend its certificate of incorporation, bylaws or other charter documents so as to affect adversely any rights of any holders of the Series C Convertible Preferred Stock; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (v)   | increase the authorized or designated number of shares of Series C Convertible Preferred Stock; or |
|-----------------|----------------------------------------------------------------------------------------------------|

| (vi)   | enter into any agreement with respect to the foregoing. |
|------------------|---------------------------------------------------------|

|     ·       | Dividends: The holders of the Series C Convertible Preferred Stock are entitled to cumulative dividends at the rate per share (as a percentage of the stated value per share) of 4.0% per annum. Dividends are payable (i) quarterly on March 15, June 15, September 15 and December 15 and (ii) when and to the extent shares of the Series C Convertible Preferred Stock are converted into common stock. |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | Voluntary Conversion:  A holder of Series C Convertible Preferred Stock can elect to convert its Series C Convertible Preferred Stock into shares of our common stock at any time from and after the Original Issue Date (as defined in the certificate of incorporation).  Each share of Series C Convertible Preferred Stock is convertible into that number of shares of our common stock determined by dividing the stated value of such share of Series C Convertible Preferred Stock (as increased for accrued dividends) by the conversion price. |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | Conversion Price: The conversion price is initially $0.50, subject to adjustment. |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------|

----

| Name              |   | Age |   | Title                                                            |
|-----------------------------|--------|-----|--------|------------------------------------------------------------------|
| Patrick S. Smith            |   | 58  |   | President and Chief Executive Officer and Chairman of the Board  |
| David J. Corcoran      |   | 62  |   | Executive Vice President, Chief Financial Officer and a Director |
| Judith S. T. Geaslen   |   | 49  |   | Vice President of Finance                                        |
| Sheldon L. Goldberg         |   | 63  |   | Director                                                         |
| William E. McConville  |   | 64  |   | Independent Director                                             |
| Ronald V. Pompeo       |   | 57  |   | Independent Director                                             |
| Bert A. Spilker        |   | 69  |   | Independent Director                                             |

----

----

|                                                |   |   |   |   |       |   |    |         |   |   |            |   |   |             |   |   | Non-EquityIncentivePlanCompensation ($) |   |                      |   |   |   |   |   |
|-----------------------------------------------------|--------|--------|--------|--------|------------|--------|---------|--------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|-----------------------------------------|--------|---------------------------|--------|--------|--------|--------|--------|
|                                                |   |   |   |   |       |   |    |         |   |   |            |   |   |             |   |   |                                    |   |                      |   |   |   |   |
|                                                |   |   |   |   |       |   |    |         |   |   | StockAwards ($) |   |   | OptionAwards ($) |   |   |                                    |   | All OtherCompensation ($) |   |   |   |   |
| Name and Principal Position                         |   | Year   |   |   | Salary ($) |   |    | Bonus ($)(1) |   |   |            |   |   |             |   |   |                                    |   | Total($)                  |   |
| (a)                                                 |   | (b)    |   |   | (c)        |   |    | (d)          |   |   | (e)             |   |   | (f)              |   |   | (g)                                     |   |                      | (h)    |   |   | (i)    |   |
| Patrick S. Smith,                                   |   |   | 2010   |   |       | $      | 224,708 |         |   | None   |            |   | None   |             |   | $      | 32,490                                  | (2)    |                      | None   |   |   | $      | 24,934 | (5) |   | $ | 282,132 |   |
| President, Chief Executive Officer                  |   |   | 2009   |   |       | $      | 87,500  |         |   | None   |            |   | None   |             |   | $      | 48,290                                  | (3)    |                      | None   |   |   | $      | 13,000 | (6) |   | $ | 148,790 |   |
| and Chairman of the Board                           |   |   | 2008   |   |       | $      | 126,783 |         |   | None   |            |   | None   |             |   | $      | 53,348                                  | (4)    |                      | None   |   |   | $      | 13,361 | (7) |   | $ | 193,492 |   |
|                                                |   |   |   |   |       |   |    |         |   |   |            |   |   |             |   |   |                                    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| David J. Corcoran,                                  |   |   | 2010   |   |       | $      | 185,083 |         |   | None   |            |   | None   |             |   | $      | 24,369                                  | (2)    |                      | None   |   |   | $      | 7,125  | (8) |   | $ | 216,577 |   |
| Executive Vice President,Chief                      |   |   | 2009   |   |       | $      | 74,375  |         |   | None   |            |   | None   |             |   | $      | 36,219                                  | (3)    |                      | None   |   |   | $      | 10,250 | (9) |   | $ | 120,844 |   |
| Financial Officer and Director                      |   |   | 2008   |   |       | $      | 97,167  |         |   | None   |            |   | None   |             |   | $      | 40,011                                  | (4)    |                      | None   |   |   | $      | 10,361 | (10) |   | $ | 147,539 |   |
|                                                |   |   |   |   |       |   |    |         |   |   |            |   |   |             |   |   |                                    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Judith S. T. Geaslen                                |   |   | 2010   |   |       | $      | 113,833 |         |   | None   |            |   | None   |             |   | $      | 34,240                                  | (2)    |                      | None   |   |   | $      | 5,700  | (11) |   | $ | 153,773 |   |
| Vice President, Finance                             |   |   | 2009   |   |       | $      | 50,000  |         |   | None   |            |   | None   |             |   | $      | 52,274                                  | (3)    |                      | None   |   |   | $      | 5,460  | (12) |   | $ | 107,734 |   |
|                                                |   |   | 20 8   |   |       | $      | 80,514  |         |   | None   |            |   | None   |             |   | $      | 35,487                                  | (4)    |                      | None   |   |   | None   |   |   | $ | 116,001 |   |
|                                                |   |   |   |   |       |   |    |         |   |   |            |   |   |             |   |   |                                    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sheldon L. Goldberg,                                |   |   | 2010   |   |       | None   |    |         | None   |   |            | None   |   |             | None   |   |                                    | None   |                      |   | None   |   |   | None   |   |
| Director and Former Senior Vice                     |   |   | 2009   |   |       | None   |    |         | None   |   |            | $      | 30,000 | (14)             |   | None   |                                    |   | None                      |   |   | None   |   |   | $ | 30,000 |   |
| President, Corporate Development (1) |   |   | 2008   |   |       | $      | 31,950  |         |   | None   |            |   | None   |             |   | $      | 112,253                                 |   |                      | None   |   |   | $      | 1,361  | (13) |   | $ | 145,564 |   |

----

| (1)   | Mr. Goldberg resigned as Senior Vice President, Corporate Development effective December 31, 2008.  Mr. Goldberg continues as a member of the Board of Directors. The information in this table for Mr. Goldberg relates to compensation he received in his capacity as Senior Vice President, Corporate Development. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Represents the aggregate expense under ASC 718 recognized by Curaxis for 2010 as a result of option awards held by the applicable executive officer, disregarding estimated forfeitures. Assumptions made in the valuation were consistent with those applied in years 2009 and 2008. For a description of these assumptions, see Notes 2 and 11 to the financial statements for the year ended December 31, 2010. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Represents the aggregate expense under ASC 718 recognized by Curaxis for 2009 as a result of option awards held by the applicable executive officer, disregarding estimated forfeitures. For a description of these assumptions made in the evaluation, see Notes 2 and 11 to the financial statements for the year ended December 31, 2010. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Represents the aggregate expense under ASC 718 recognized by Curaxis for 2008 as a result of option awards held by the applicable executive officer, disregarding estimated forfeitures. For a description of the assumptions made in the valuation, see Notes 1 and 6 to the financial statements for the year ended December 31, 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Represents car allowance of $9,500 plus payment for certain travel expenses incurred not directly associated with the company. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Represents car allowance of $3,000 plus retention payment of $10,000. |
|-----------------|-----------------------------------------------------------------------|

| (7)   | Represents annual car allowance of $12,000 plus the value of our contributions on behalf of Mr. Smith under our long-term disability insurance plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Represents car allowance of $7,125. |
|-----------------|-------------------------------------|

| (9)   | Represents car allowance of $2,250 plus retention payment of $8,000. |
|-----------------|----------------------------------------------------------------------|

| (10)   |  Represents car allowance of $9,000 plus the value of our contributions on behalf of Mr. Corcoran under our long-term disability insurance plan. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)   |  Represents car allowance of $5,700. |
|------------------|-------------------------------------------|

| (12)   | Represents car allowance of $1,800 plus retention payment of $3,660. |
|------------------|----------------------------------------------------------------------|

| (13)   | Represents the value of our contributions on behalf of Mr. Goldberg under our long-term disability insurance plan. |
|------------------|-------------------------------------------------------------------------------------------------------------------------|

| (14)   | Represents the fair value of 150,000 shares of Curaxis common stock granted to Mr. Goldberg to satisfy, in full, amounts due under an original five-year employment contract. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | The compensation of the executive officers of Curaxis is reviewed on an annual basis by the Board of Directors.  Each year, Curaxis considers whether to adjust the base salaries of senior management, including the executive officers, in order to reward individual performance, keep pace with cost of living increases and respond to competitive considerations. |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                |   |   |   |   |      |   |   |        |   |   |      |   |   |      |    |   | Non-Equity      |   |   |            |   |   |     |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|-------------|--------|--------|-----------|--------|--------|-----------|---------|--------|-----------------|--------|--------|-----------------|--------|--------|----------|--------|
|                                                                |   |   |   |   |      |   |   |        |   |   |      |   |   |      |    |   | Incentive       |   |   |            |   |   |     |   |
|                                                                |   |   |   |   |      |   |   |        |   |   | Stock     |   |   | Option    |    |   | Plan            |   |   | All Other       |   |   |     |   |
| Name and Principal Position                                         |   | Year   |   |   | Salary($) |   |   | Bonus($)(1) |   |   | Awards($) |   |   | Awards($) |    |   | Compensation($) |   |   | Compensation($) |   |   | Total($) |   |
| (a)                                                                 |   | (b)    |   |   | (c)       |   |   | (d)         |   |   | (e)       |   |   | (f)       |    |   | (g)             |   |   | (h)             |   |   | (i)      |   |
| Sheldon L. Goldberg                                                 |   | 2010   |   |   | $         | 6,000  | (4)    |        | None   |   |      | None   |   |      | $       | 33,817 | (5)             |   | None   |            |   | None   |     |   | $ | 39,817 |   |
| Director and Former Senior Vice President, |   | 2009   |   |   | None      |   |   | None        |   |   | None      |   |   | $         | 137,443 | (6)    |            | None   |   |            | None   |   |     | $      | 137,443 |   |
| Corporate Development (1)                                           |   | 2008   |   |   | None      |   |   | None        |   |   | None      |   |   | None      |    |   | None            |   |   | None            |   |   | None     |   |
|                                                                |   |   |   |   |      |   |   |        |   |   |      |   |   |      |    |   |            |   |   |            |   |   |     |   |   |   |   |   |   |   |   |
| William E. McConville                                               |   | 2010   |   |   | $         | 6,000  | (4)    |        | None   |   |      | None   |   |      | $       | 29,570 | (5)             |   | None   |            |   | None   |     |   | $ | 35,570 |   |
| Director                                                            |   | 2009   |   |   | None      |   |   | None        |   |   | None      |   |   | $         | 64,729  | (6)    |            | None   |   |            | None   |   |     | $      | 64,729 |   |
|                                                                |   | 2008   |   |   | None      |   |   | None        |   |   | None      |   |   | $         | 89,976  | (7)    |            | None   |   |            | None   |   |     | $      | 89,976 |   |
|                                                                |   |   |   |   |      |   |   |        |   |   |      |   |   |      |    |   |            |   |   |            |   |   |     |   |   |   |   |   |   |   |   |
| Ronald V. Pompeo                                                    |   | 2010   |   |   | $         | 6,000  | (4)    |        | None   |   |      | None   |   |      | $       | 7,877  | (5)             |   | None   |            |   | None   |     |   | $ | 7,682 |   |
| Director (2)                                                        |   | 2009   |   |   | None      |   |   | None        |   |   | None      |   |   | $         | 526     | (6)    |            | None   |   |            | None   |   |     | $      | 526 |   |
|                                                                |   | 2008   |   |   | None      |   |   | None        |   |   | None      |   |   | None      |    |   | None            |   |   | None            |   |   | None     |   |
|                                                                |   |   |   |   |      |   |   |        |   |   |      |   |   |      |    |   |            |   |   |            |   |   |     |   |   |   |   |   |   |   |   |
| Bert A. Spilker                                                     |   | 2010   |   |   | $         | 6,000  | (4)    |        | None   |   |      | None   |   |      | $       | 7,877  | (5)             |   | None   |            |   | None   |     |   | $ | 13,877 |   |
| Director (3)                                                        |   | 2009   |   |   | None      |   |   | None        |   |   | None      |   |   | None      |    |   | None            |   |   | None            |   |   | None     |   |
|                                                                |   | 2008   |   |   | None      |   |   | None        |   |   | None      |   |   | None      |    |   | None            |   |   | None            |   |   | None     |   |

| (1)   | Mr. Goldberg resigned as Senior Vice President, Corporate Development effective December 31, 2008.  Mr. Goldberg continues as a member of the Board of Directors. The information in this table for Mr. Goldberg relates to compensation he received in his capacity as a member of the Board of Directors. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Mr. Pompeo was elected to the Board of Directors effective July 2009. |
|-----------------|-----------------------------------------------------------------------|

| (3)   | Dr. Spilker was elected to the Board effective August 2010. |
|-----------------|-------------------------------------------------------------|

| (4)   | Represents director fees accrued and unpaid for 2010. |
|-----------------|-------------------------------------------------------|

| (5)   | Represents the aggregate expense under ASC 718 recognized by Curaxis for 2010 as a result of option awards held by the applicable director, disregarding estimated forfeitures. Assumptions made in the valuation were consistent with those applied in years 2009 and 2008. For a description of these assumptions, see Notes 2 and 11 to the financial statements for the year ended December 31, 2010. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Represents the aggregate expense under ASC 718 recognized by Curaxis for 2009 as a result of option awards held by the applicable director, disregarding estimated forfeitures. For a description of the assumptions made in the valuation, see Notes 2 and11 to the financial statements for the year ended December 31, 2010. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Represents the aggregate expense under ASC 718 recognized by Curaxis for 2008 as a result of option awards held by the applicable director, disregarding estimated forfeitures. For a description of the assumptions made in the valuation, see Notes 1 and 6 to the financial statements for the year ended December 31, 2009. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                      |   | Option Awards |    | Stock Awards |          |
|---------------------------|--------|---------------|---------|--------------|---------------|
|                      |   |          |    |         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Equity |   |
|                      |   |          |    |         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Incentive |   |
|                      |   |          |    |         |          |   |   |   |   |   |   |   |   |   |   |   |   | Equity |   |   | Plan |   |
|                      |   |          |    |         |          |   |   |   |   |   |   |   |   |   |   |   |   | Incentive |   |   | Awards: |   |
|                      |   |          |    |         |          |   |   |   |   |   |   |   |   |   |   |   |   | Plan |   |   | Market |   |
|                      |   |          |    |         |          |   |   |   |   |   |   |   |   |   |   |   |   | Awards: |   |   | or Payout |   |
|                      |   |          |    |         |          |   |   |   |   |   |   |   |   |   |   |   |   | Number |   |   | Value of |   |
|                      |   |          |    |         |          |   |   |   |   |   |   |   |   |   | Market |   |   | of Unearned |   |   | Unearned |   |
|                      |   | Number of     |    |         | Number of     |   |   |   |   |   |   | Number of |   |   | Value of |   |   | Shares, |   |   | Shares, |   |
|                      |   | Securities    |    |         | Securities    |   |   |   |   |   |   | Shares or |   |   | Shares or |   |   | Units or |   |   | Units or |   |
|                      |   | Underlying    |    |         | Underlying    |   |   |   |   |   |   | Units of |   |   | Units of |   |   | Other |   |   | Other |   |
|                      |   | Unexercised   |    |         | Unexercised   |   |   | Option |   |   |   | Stock That |   |   | Stock That |   |   | Rights |   |   | Rights That |   |
|                      |   | Options       |    |         | Options       |   |   | Exercise |   | Option |   | Have Not |   |   | Have Not |   |   | That Have |   |   | Have |   |
|                      |   | (#)           |    |         | (#)           |   |   | Price |   | Expiration |   | Vested |   |   | Vested |   |   | Not Vested |   |   | Not Vested |   |
| Name                      |   | Exercisable   |    |         | Unexercisable |   |   | ($) |   | Date |   | (#) |   |   | ($) |   |   | (#) |   |   | ($) |   |
| (a)                       |   | (b)           |    |         | (c)           |   |   | (d) |   | (e) |   | (f) |   |   | (g) |   |   | (h) |   |   | (i) |   |
| Patrick S. Smith(1)       |   |          | 240,000 |         |          |   | — |   |   | $ | 0.83 |   | 06/20/12 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Patrick S. Smith(2)       |   |          | 80,000  |         |          |   | — |   |   | $ | 2.00 |   | 09/15/13 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Patrick S. Smith(3)       |   |          | 40 ,000 |         |          |   | — |   |   | $ | 8.00 |   | 01/17/15 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Patrick S. Smith(4)       |   |          | 72,000  |         |          |   | 48,000 |   |   | $ | 1.51 |   | 02/05/17 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| David J. Corcoran(1)      |   |          | 180,000 |         |          |   | — |   |   | $ | 0.83 |   | 06/20/12 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| David J. Corcoran(2)      |   |          | 60,000  |         |          |   | — |   |   | $ | 2.00 |   | 09/15/13 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| David J. Corcoran(3)      |   |          | 30 ,000 |         |          |   | — |   |   | $ | 8.00 |   | 01/17/15 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| David J. Corcoran(4)      |   |          | 54,000  |         |          |   | 36,000 |   |   | $ | 1.51 |   | 02/05/17 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Judith S. T. Geaslen(7)   |   |          | 3,500   |         |          |   | — |   |   | $ | 4.00 |   | 12/01/14 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Judith S. T. Geaslen(3)   |   |          | 5 ,000  |         |          |   | — |   |   | $ | 8.00 |   | 01/17/15 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Judith S. T. Geaslen(8)   |   |          | 1,000   |         |          |   | — |   |   | $ | 10.00 |   | 05/04/15 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Judith S. T. Geaslen(5)   |   |          | 20,000  |         |          |   | 5,000 |   |   | $ | 6.00 |   | 05/18/16 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Judith S. T. Geaslen(4)   |   |          | 18,000  |         |          |   | 12,000 |   |   | $ | 1.51 |   | 02/05/17 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Judith S. T. Geaslen(13)  |   |          | 100,000 |         |          |   | — |   |   | $ | 0.20 |   | 02/19/19 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Judith S. T. Geaslen(16)  |   |          | — |         |          |   | 50,000 |   |   | $ | 0.20 |   | 01/18/20 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Sheldon Goldberg(9)       |   |          | 22,500  |         |          |   | — |   |   | $ | 8.00 |   | 04/18/15 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Sheldon Goldberg(10)      |   |          | 50 ,000 |         |          |   | — |   |   | $ | 8.00 |   | 04/18/15 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Sheldon Goldberg(8)       |   |          | 8,000   |         |          |   | 2,000 |   |   | $ | 10.00 |   | 05/04/15 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Sheldon Goldberg(5)       |   |          | 48,000  |         |          |   | 12,000 |   |   | $ | 6.00 |   | 05/18/16 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Sheldon Goldberg(4)       |   |          | 54,000  |         |          |   | 36,000 |   |   | $ | 1.51 |   | 02/05/17 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Sheldon Goldberg(14)      |   |          | 150,000 |         |          |   | — |   |   | $ | 0.20 |   | 09/08/19 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| William E. McConville(11) |   |          | 35,000  |         |          |   | — |   |   | $ | 6.00 |   | 02/20/16 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| William E. McConville(12) |   |          | 80 ,000 |         |          |   | 2 0,000 |   |   | $ | 1.51 |   | 02/05/17 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| William E. McConville(6)  |   |          | 3 0,000 |         |          |   | 2 0,000 |   |   | $ | 1.00 |   | 06/11/17 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| William E. McConville(14) |   |          | 150,000 |         |          |   | — |   |   | $ | 0.20 |   | 09/08/19 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Ronald V. Pompeo(15)      |   |          | 1 0,000 |         |          |   | 40,000 |   |   | $ | 0.20 |   | 09/08/19 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Bert A. Spilker(17)       |   |          | — |         |          |   | 100,000  |   |   | $ | 0.20 |   | 08/12/20 |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |

| (1)    | These stock options vested as to 20% of the shares on June 20, 2003 and 20% vested on each June 20th thereafter based on continued employment through June 20, 2007.                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                |
| (2)    | These stock options vested as to 20% of the shares on September 15, 2004 and 20% vested on each September 15th thereafter based on continued employment through September 15, 2008. |
|   |                                                                                                                                                                                |
| (3)    | These stock options vested as to 20% of the shares on January 17, 2006 and 20% vested on each January 17th thereafter based on continued employment through January 17, 2010.       |
|   |                                                                                                                                                                                |
| (4)    | These stock options vested as to 20% of the shares on January 1, 2008 and 20% vested on each January 1st thereafter based on continued employment through January 1, 2012.          |
|   |                                                                                                                                                                                |
| (5)    | These stock options vest as to 20% on May 18, 2007 and 20% vested on each May 18th thereafter based on continued employment through May 18, 2011.                                   |

----

| (6)    | These stock options granted to Senior officers and non-employee Board members vested as to 20% of the shares on June 11, 2008 and 20% vested on each June 11th thereafter based on continued employment or service as a director of Curaxis through June 11, 2012 provided that such vesting shall be accelerated and each such option shall become fully-vested upon the first to occur of any of the following: (1) a sale by the Corporation of all or substantially all of its assets or similar acquisition or merger transaction approved by the Board; (2) closing of an out licensing transaction or similar collaboration agreement by the Corporation that is approved by the Board and provides Curaxis with at least $5 million in upfront cash payments at closing; or (3) closing of an equity investment in the Corporation by one or more institutional investors totaling at least $15 million at closing. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (7)    | These stock options granted to Ms. Geaslen upon employment vested as to 20% of the shares on December 1, 2005 and 20% vested on each December 1st thereafter based on continued employment through December 1, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (8)    | These stock options vested as to 20% of the shares on May 4, 2006 and 20% vested on each May 4th thereafter based on continued employment through May 4, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (9)    | These stock options vested as to 20% of the shares on April 18, 2006 and 20% vested on each April 18th thereafter based on continued employment through April 18th 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (10)   | These stock options granted to Mr. Goldberg upon employment vested as to 20% of the shares at April 18, 2005 and  16% vested on each April 18th thereafter based on continued employment through April 18th 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (11)   | These stock options vested as to 1/3 of the shares on February 20, 2007 and 1/3 vested on each February 20th thereafter until fully vested based on continued service as a director of Curaxis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (12)   | These stock options vested as to 20% of the shares on January 1, 2008 and 20% vested on each January 1st thereafter through January 1, 2012 based on continued  service as a director of Curaxis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (13)   | These stock options vested as to 100% of the shares on the grant date of February 19, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (14)   | These stock options vested as to 100% of the shares on the grant date of September 9, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (15)   | These stock options vested as to 20% of the shares on September 8, 2009 and 20% vested on each September 8th thereafter through September 8, 2014 based on continued  service as a director of Curaxis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (16)   | These stock options vest as to 20% of the shares on January 18, 2011and 20% vest on each January 18th thereafter based on continued employment through January 18, 2015.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (17)   | These stock options vest as to 20% of the shares on August 12, 2011 and 20% vested on each August 12th thereafter through August 12, 2015 based on continued service as a director of Curaxis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|     ·       | each stockholder known to Curaxis to own beneficially more than 5% of Curaxis’ common stock; |
|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|

|     ·       | each of Curaxis’ directors; |
|--------------------------------------------------------------------|-----------------------------------|

----

|     ·       | each of Curaxis’ executive officers, including each of the Named Executive Officers listed in the “2010 Summary Compensation Table” included in this proxy statement; and |
|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | all of Curaxis’ current directors and executive officers as a group. |
|--------------------------------------------------------------------|----------------------------------------------------------------------------|

|                                                                              |   |  Amount and Natureof Beneficial Ownershipof Ordinary Shares(1) |        |               |   |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|-------------|--------------------|--------|--------|
| Name and Address                                                                  |   |                                                                |        | Percentageof Total |   |
|                                                                              |   |                                                                |        |
| DIRECTORS AND EXECUTIVE OFFICERS                                                  |   |                                                                |        |               |   |   |   |   |
| Patrick S. Smith,President, Chief Executive Officer and Director                  |   |                                                                | 13,330,453  | (2)                |   |   | 16.0 | % |
| David J. Corcoran,Executive Vice President, Chief Financial Officer and Director  |   |                                                                | 3,675,961   | (3)                |   |   | 4.4 | % |
| Judith S. T. Geaslen,Vice President, Finance                                      |   |                                                                | 188,300     | (4)                |   |   | — |   |
| Sheldon Goldberg,Former Senior Vice President, Corporate Development and Director |   |                                                                | 659,600     | (5)                |   |   | — |   |
| William E. McConville,Director                                                    |   |                                                                | 295,000     | (6)                |   |   | — |   |
| Ronald  V. Pompeo,Director                                              |   |                                                                | 70,800      | (7)                |   |   | — |   |
| Bert A. Spilker,Director                                                          |   |                                                                | 3,000       |               |   |   | — |   |
| All directors and executive officers as a group (7 persons)                  |   |                                                                | 18, 223,114 | (8)                |   |   | 21.9 | % |
|                                                                              |   |                                                                |        |               |   |   |   |   |
| SHAREHOLDERS OWNING MORE THAN 5%                                                  |   |                                                                |        |               |   |   |   |   |
| Richard L. Bowen                                                                  |   |                                                                | 10,162,560  |               |   |   | 12.3 | % |
|                                                                              |   |                                                                |        |               |   |   |   |   |
| Southridge                                                                        |   |                                                                | 2,979,255   | (9)                |   |   | 3.6 | % |

| —  | Less than 1%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (1)           | Based on 83,243,240 outstanding shares assuming the exercise of 10,654,436 warrants issued and outstanding, but assuming no exercise of outstanding options. In addition, shares outstanding do not assume conversion of Series A, B and C preferred stock.                                                                                                                                                                                                                                               |   |
| (2)           | Includes 456,000 shares of Common Stock issuable upon exercise of stock options exercisable within 60 days of March 30, 2011.  Also includes 4,345,000 shares owned by the Patrick S. Smith Charitable Remainder Trust, of which Mr. Smith is the trustee, and 300,000 shares held by RBC Dain Rauscher Inc. as custodian for Patrick S. Smith IRA.                                                                                                                                             |   |
| (3)           | Includes 342 ,000 shares of Common Stock issuable upon exercise of stock options exercisable within 60 days of  March 30, 2011 and 741,382 shares and 36,150 warrants owned by the Patrick S. Smith Irrevocable Trust u/d/t dated June 25, 1991, for which David J. Corcoran serves as trustee. Mr. Corcoran has full investment and voting power over the shares held in the Trust, but disclaims beneficial ownership thereof. Also includes 87,000 shares held by the David J. Corcoran Rollover IRA.  |   |

----

| (4) | Includes 168,500 shares of Common Stock issuable upon exercise of stock options exercisable within 60 days of March 30, 2011.  Also includes 4,000 shares held by Wachovia Securities as custodian fbo Judith S. T. Geaslen.                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (5) | Includes 364,500 shares of Common Stock issuable upon exercise of stock options exercisable within 60 days of March 30, 2011.  Also includes 50,000 shares owned by Shelberg LLC of which Sheldon Goldberg is the general partner and 185,000 shares and 60,000 warrants held by the Sheldon Goldberg Trust for which Sheldon L, Goldberg is the trustee.                                                                                                                                                                                                                                                                                                          |   |
| (6) | Includes 295,000 shares of Common stock issuable upon the exercise of stock options exercisable within 60 days of March 30, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| (7) | Includes 10,000 shares of Common stock issuable upon the exercise of stock options exercisable within 60 days of March 30, 2011, and 5,000 shares and 30,000 warrants held by Charles Schwab &Co., Inc. as custodian for the Ronald V. Pompeo IRA.                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| (8) | See notes 1-7 above.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| (9) | Includes 2,979,255 shares of common stock held by Southridge LLC affiliates, CP Acquisition Partners LP and Southridge Partners II LP.  Reported amount does not include 6,559,464 warrants held by those affiliates. In addition, CP Acquisition Partners LP holds 500 shares of convertible Series A, 500 shares of convertible Series B, and 636 shares of convertible Series C preferred stock, which are convertible into a total of 3,700,571 shares of common stock, and a Promissory note, which is convertible into 500,000 shares of common stock. All warrants,  preferred stock and the note are subject to certain conversion restrictions. |   |

----

|          |   | Fiscal Years Ended December 31, |   |
|--------------------|--------|--------------------------------------|--------|
|          |   | 2010                                 |   |   | 2009 |   |
| Audit and          |   |                                 |   |   |   |   |
| Audit Related Fees |   | $                                    | 50,000 | (1) |   | $ | 50,000 | (3) |
| Tax Fees           |   | $                                    | -      |   |   | $ | - |   |
| All Other Fees     |   | $                                    | 26,220 | (2) |   | $ | - |   |

| (1)   | For 2010, audit and audit related fees were for professional services rendered for the audit of the Company’s financial statements for the fiscal year and review of the Company’s quarterly financial statements included in its Registration Statements and in its Form 10Q filing for the quarter ended September 30, 2010. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   |  For 2010, all other fees are for services rendered related to our Registrations Statements filed on Form S-4 relating to the Merger Transaction and Form S-1 related to our Equity Credit Agreement. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | For 2009, audit and audit related fees paid to Rosenberg Rich Baker Berman and Company include fees related to the audits of the financial statements for the  four years ended December 31, 2009. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Exhibit Number |   | Description of Document                                                                                                                                                                                                                                                          |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1            |   | Agreement and Plan of Merger and Plan of Reorganization by and Among Auto Search Cars, Inc., Auto Search Cars Acquisition Corp., and Curaxis Pharmaceutical Corporation.                                                                                                         |
| 3.1            |   | Articles of Incorporation (incorporated by reference to the Company’s Registration Statement on Form S-1 (as filed with the SEC on May 15, 2008 (Registration No. 333-150937)).                                                                                            |
| 3.2            |   | By-laws of the Company (incorporated by reference to the Company’s Registration Statement on Form S-1, filed with the SEC on May 15, 2008 (Registration No. 333-150937)).                                                                                                  |
| 3.3            |   | Certificate of Designation of Preferences, Rights and Limitations of the Curaxis Pharmaceutical Corporation Series C Convertible Preferred Stock, as filed with the Nevada Secretary of State on March 29, 2011.                                                                 |
| 10.1           |   | Feasibility, Development and Commercialization Agreement, dated July 22, 2002, by and between Voyager Pharmaceutical Corporation, a Delaware corporation, and Southern Biosystems, Inc., an Alabama corporation (Durect) (as filed on Form S-4/A with the SEC on June 21, 2010). |
| 10.2           |   | Amendment No.1 to Feasibility, Development and Commercialization Agreement, effective January 23, 2007, by and between Durect Corporation and Voyager Pharmaceutical Corporation (as filed on Form S-4/A with the SEC on June 21, 2010).                                         |
| 10.3           |   | Office Service Agreement, dated November 3, 2009, by and between Voyager Pharmaceutical Corporation and Regus Management Group LLC (as filed on Form S-4/A with the SEC on June 21, 2010).                                                                                       |
| 10.4           |   | Supply Agreement, dated January 1, 2009, by and between Voyager, Inc. and Mallinckrodt Inc. (as filed on Form S-4/A with the SEC on June 21, 2010).                                                                                                                              |
| 10.5           |   | Consulting Agreement, dated June 12, 2009, by and between Voyager Pharmaceutical Corporation and Canterbury Investment Partners LLC (as filed on Form S-4/A with the SEC on June 21, 2010).                                                                                      |
| 10.6           |   | Transaction Management Agreement, dated May 28, 2009, by and between Voyager Pharmaceutical Corporation and Southridge Business Solutions Group LLC.                                                                                                                             |
| 10.7           |   | Investor Development and Corporate Imaging Agreement, dated September 14, 2009, by and between Voyager Pharmaceutical Corporation and GroupMark Financial Services Ltd. (as filed on Form S-4/A with the SEC on June 21, 2010).                                                  |
| 10.8           |   | Amended and Restated Equity Credit Agreement by and between Curaxis Pharmaceutical Corp. and Southridge Partners II, LP, dated December 6, 2010 (as filed as Exhibit 10.8 on Form S-1 with the SEC on December 8, 2010)                                                          |
|           |   |                                                                                                                                                                                                                                                                             |
| 10.9           |   | Amended and Restated Registration Rights Agreement by and between Curaxis Pharmaceutical Corp. and Southridge Partners II, LP, dated December 6, 2010 (as filed as Exhibit 10.9 on Form S-1 with the SEC on December 8, 2010)                                                    |
| 10.10          |   | Series C Convertible Stock Purchase Agreement, by and between Curaxis Pharmaceutical Corporation and C P Acquisition Partners LP, dated March 30, 2011.                                                                                                                          |
| 31.1           |   | Certification by the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).*                                                                                                                    |
| 31.2           |   | Certification by the Principal Accounting Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)).*                                                                                                                   |
| 32.1           |   | Certification by the Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                               |
| 32.2           |   | Certification by the Principal Accounting Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                              |

----

|                  | CURAXIS PHARMACEUTICAL CORPORATION                 |                      |
|-----------------------|----------------------------------------------------|---------------------------|
|                  |                                               |                      |   |
| Dated: March 31, 2011 | By:                                                | /s/ Patrick S. Smith |   |
|                  | Patrick S. Smith                                   |                      |
|                  | Chief Executive OfficerPrincipal Executive Officer |                      |

| Dated: March 31, 2011 | By:                                                 | /s/ David J. Corcoran |   |
|-----------------------|-----------------------------------------------------|----------------------------|--------|
|                  | David J. Corcoran                                   |                       |
|                  | Chief Financial OfficerPrincipal Accounting Officer |                       |

----

| Report of Independent Registered Public Accounting Firm                                                                                                                       |   |   | F-2              |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------|--------|
| Balance Sheets                                                                                                                                                                |   |   | F-3              |   |
| Statements of Operations                                                                                                                                                      |   |   | F-4              |   |
| Statements of Changes in Stockholders’ Equity (Deficit)                                                                                                                 |   |   | F-5 – F-6  |   |
| Statements of Cash Flows                                                                                                                                                      |   |   | F-7 – F-8  |   |
| Notes to Financial Statements                                                                                                                                                 |   |   | F-9 – F-25 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                  |   | December 31, |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                                                                                                                                                                                                                                                                                  |   | 2009         |    |   | 2010 |   |
| Assets                                                                                                                                                                                                                                                                                                                                |   |
| Current assets:                                                                                                                                                                                                                                                                                                                       |   |         |    |   |   |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                             |   | $            | 631     |   |   | $ | 2 |   |
| Accounts receivable from related parties                                                                                                                                                                                                                                                                                              |   |         | 11      |   |   |   | - |   |
| Prepaid assets                                                                                                                                                                                                                                                                                                                        |   |         | 135     |   |   |   | 301 |   |
| Security deposit                                                                                                                                                                                                                                                                                                                      |   |         | 4       |   |   |   | 6 |   |
| Total current assets                                                                                                                                                                                                                                                                                                                  |   |         | 781     |   |   |   | 309 |   |
| Property and equipment, net                                                                                                                                                                                                                                                                                                           |   |         | -       |   |   |   | 2 |   |
| Other assets                                                                                                                                                                                                                                                                                                                          |   |         | -       |   |   |   | 612 |   |
| Total assets                                                                                                                                                                                                                                                                                                                          |   |         | 781     |   |   |   | 923 |   |
| Liabilities and Stockholders’ Equity (Deficit)                                                                                                                                                                                                                                                                                  |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                  |   |         |    |   |   |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                      |   |         | 2,619   |   |   |   | 2,793 |   |
| Accrued expenses                                                                                                                                                                                                                                                                                                                      |   |         | 1,345   |   |   |   | 1,231 |   |
| Current portion of capital lease obligation                                                                                                                                                                                                                                                                                           |   |         | 4       |   |   |   | 4 |   |
| Notes payable                                                                                                                                                                                                                                                                                                                         |   |         | 2,426   |   |   |   | 2,525 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                             |   |         | 6,394   |   |   |   | 6,553 |   |
|  Derivative instrument                                                                                                                                                                                                                                                                                                           |   |         | -       |   |   |   | 1,336 |   |
| Deferred purchase credit                                                                                                                                                                                                                                                                                                              |   |         | 500     |   |   |   | 500 |   |
| Deferred revenue                                                                                                                                                                                                                                                                                                                      |   |         | 1,727   |   |   |   | 1,727 |   |
| Long-term notes payable                                                                                                                                                                                                                                                                                                               |   |         | 1,750   |   |   |   | 1,250 |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                     |   |         | 10,371  |   |   |   | 11,366 |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                                                         |   |         | -       |   |   |   | - |   |
| Stockholders’ equity (deficit):                                                                                                                                                                                                                                                                                                 |   |         |    |   |   |   |   |   |
| Preferred Stock, $0.0001  par value; -0- and 20,000 authorized;    -0- and 1 shares issued and outstanding at December 31, 2009 and 2010, respectively.                                                                                                                                                 |   |         | -       |   |   |   | - |   |
| Common stock, $0.001 and $.0001 par value at December 31, 2009 and 2010,     respectively; 100,000 and 480,000 authorized at December 31, 2009 and 2010, respectively;      62,811  and 72,216 shares issued and outstanding at December 31, 2009 and  2010, respectively |   |         |    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                  |   | 62           |    |   |   | 7 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                            |   |         | 77,898  |   |   |   | 79,458 |   |
| Subscription receivable                                                                                                                                                                                                                                                                                                               |   |         | -       |   |   |   | (104 | ) |
| Deficit accumulated during the development stage                                                                                                                                                                                                                                                                                      |   |         | (87,550 | ) |   |   | (89,804 | ) |
| Total stockholders’ equity (deficit)                                                                                                                                                                                                                                                                                            |   |         | (9,590  | ) |   |   | (10,443 | ) |
| Total liabilities and stockholders’ equity (deficit)                                                                                                                                                                                                                                                                            |   | $            | 781     |   |   | $ | 923 |   |

----

|                                                                                                                                                                                                                                                                                                                                 |   | For the Years EndedDecember 31, |   |   | Cumulative from Inception (February 27, 2001) to December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                 |   | 2009                            |   |   | 2010                                                          |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                            |   |   |                                                          |   |   | (unaudited) |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                            |   |   |                                                          |   |   |   |   |
| Operating expenses                                                                                                                                                                                                                                                                                                                   |   |                            |   |   |                                                          |   |   |   |   |
| Research and development                                                                                                                                                                                                                                                                                                             |   | $                               | 132    |   |                                                          | $      | 78 |   |   | $ | 61,433 |   |
| General and administrative                                                                                                                                                                                                                                                                                                           |   |                            | 1,077  |   |                                                          |   | 1,859 |   |   |   | 26,677 |   |
| Marketing                                                                                                                                                                                                                                                                                                                            |   |                            | -      |   |                                                          |   | - |   |   |   | 5,557 |   |
| Loss on investment in real estate                                                                                                                                                                                                                                                                                                    |   |                            | -      |   |                                                          |   | - |   |   |   | 1,091 |   |
| Loss on lease termination                                                       |   |                            | -      |   |                                                          |   | - |   |   |   | 374 |   |
| Total operating (income) expenses                                                                                                                                                                                                                                                                                                    |   |                            | 1,209  |   |                                                          |   | 1,937 |   |   |   | 95,132 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                            |   |   |                                                          |   |   |   |   |   |   |   |
| Operating (loss) income                                                         |   |                            | (1,209 | )      |                                                          |   | (1,937 | ) |   |   | (95,132 | ) |
| Gain on debt restructuring                                                      |   |                            | 6,562  |   |                                                          |   | 204 |   |   |   | 6,766 |   |
| Interest income (expense), net                                                  |   |                            | (366   | )      |                                                          |   | (175 | ) |   |   | (1,092 | ) |
| Interest from derivative liability                                                                                                                                                                                                                                                                                                   |   |                            | -      |   |                                                          |   | (2,586 | ) |   |   | (2,586 | ) |
| Change in fair value of derivative liability                                                                                                                                                                                                                                                                                         |   |                            | -      |   |                                                          |   | 2,250 |   |   |   | 2,250 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                            |   |   |                                                          |   |   |   |   |   |   |   |
| Net income (loss)                                                               |   | $                               | 4,987  |   |                                                          | $      | (2,244 | ) |   | $ | (89,794 | ) |
| Basic net income (loss) per share                                                                                                                                                                                                                                                                                                    |   | $                               | 0.09   |   |                                                          | $      | (0.03 | ) |   |   |   |   |
| Diluted net income (loss) per  share                                                                                                                                                                                                                                                                                       |   | $                               | 0.08   |   |                                                          | $      | (0.03 | ) |   |   |   |   |
| Weighted average common shares outstanding – basic                                                                                                                                                                                                                                                                             |   |                            | 57,699 |   |                                                          |   | 67,323 |   |   |   |   |   |
| Weighted average common shares outstanding – diluted                                                                                                                                                                                                                                                                           |   |                            | 60,701 |   |                                                          |   | 67,323 |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |                             |   |   |                          |   |   |  Deficit  Accumulated  during the  Development Stage |    |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|---------|----------------------------------|--------|--------|-------------------------------|--------|--------|--------------------------------------------------------------------------|---------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |                             |   |   |                          |   |   |                                                                     |    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |                             |   |   |                          |   |   |                                                                     |    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Preferred stock |    |   | Common stock |   |    |  Additional Paid-in-Capital |   |   |  Subscription receivable |   |   |                                                                     |    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Shares          |    |   | Amount       |   |    | Shares                           |   |   | Amount                        |   |   |                                                                     |    |   |   |   |   | Total |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |                             |   |   |                          |   |   |                                                                     |    |   |   |   |   |   |   |   |   |
| Balances at Inception (February 27, 2001)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |            | ― |   |         | $      | ― |                             |   |   | ―                       |   |   | $                                                                        | ― |   |   | $      | ― |   |   | $ | ― |   |   | $ | ― |   |   | $ | ― |   |
| Sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |                             |   |   | 25,657                        |   |   |                                                                     | 26      |   |   |   | 1,073 |   |   |   |   |   |   |   | ― |   |   |   | 1,099 |   |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | 100 |   |   |   | ― |   |   |   | ― |   |   |   | 100 |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | ― |   |   |   | ― |   |   |   | (1,219 | ) |   |   | (1,219 | ) |
| Balances at December 31, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                             |   |   | 25,657                        |   |   |                                                                     | 26      |   |   |   | 1,173 |   |   |   | ― |   |   |   | (1,219 | ) |   |   | (20 | ) |
| Sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         |   | ― |                             |   |   | 4,054                         |   |   |                                                                     | 4       |   |   |   | 4,105 |   |   |   | ― |   |   |   | ― |   |   |   | 4,109 |   |
| Issuance of common stock in exchange for consulting services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |            | ― |   |         |   | ― |                             |   |   | 12                            |   |   |                                                                     | ― |   |   |   | 10 |   |   |   | ― |   |   |   | ― |   |   |   | 10 |   |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | 272 |   |   |   | ― |   |   |   | ― |   |   |   | 272 |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | ― |   |   |   | ― |   |   |   | (3,190 | ) |   |   | (3,190 | ) |
| Balances at December 31, 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                             |   |   | 29,723                        |   |   |                                                                     | 30      |   |   |   | 5,560 |   |   |   | ― |   |   |   | (4,409 | ) |   |   | 1,181 |   |
| Sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         |   | ― |                             |   |   | 4,794                         |   |   |                                                                     | 5       |   |   |   | 8,239 |   |   |   | ― |   |   |   | ― |   |   |   | 8,244 |   |
| Issuance of common stock in exchange for consulting services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |            | ― |   |         |   | ― |                             |   |   | 36                            |   |   |                                                                     | ― |   |   |   | 55 |   |   |   | ― |   |   |   | ― |   |   |   | 55 |   |
| Repurchase of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |            | ― |   |         |   | ― |                             |   |   | (330                          | )      |   |                                                                     | ― |   |   |   | (379 | ) |   |   | ― |   |   |   | ― |   |   |   | (379 | ) |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | 78 |   |   |   | ― |   |   |   | ― |   |   |   | 78 |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | ― |   |   |   | ― |   |   |   | (6,633 | ) |   |   | (6,633 | ) |
| Balances at December 31, 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                             |   |   | 34,223                        |   |   |                                                                     | 35      |   |   |   | 13,553 |   |   |   | ― |   |   |   | (11,042 | ) |   |   | 2,546 |   |
| Sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         |   | ― |                             |   |   | 4,388                         |   |   |                                                                     | 4       |   |   |   | 12,491 |   |   |   | ― |   |   |   | ― |   |   |   | 12,495 |   |
| Issuance of common stock in exchange for consulting services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |            | ― |   |         |   | ― |                             |   |   | 20                            |   |   |                                                                     | ― |   |   |   | 66 |   |   |   | ― |   |   |   | ― |   |   |   | 66 |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | ― |   |   |   | ― |   |   |   | (11,626 | ) |   |   | (11,626 | ) |
| Balances at December 31, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                             |   |   | 38,631                        |   |   |                                                                     | 39      |   |   |   | 26,110 |   |   |   | ― |   |   |   | (22,668 | ) |   |   | 3,481 |   |
| Sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         |   | ― |                             |   |   | 3,305                         |   |   |                                                                     | 3       |   |   |   | 28,839 |   |   |   | ― |   |   |   | ― |   |   |   | 28,842 |   |
| Issuance of common stock in exchange for consulting services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |            | ― |   |         |   | ― |                             |   |   | 4                             |   |   |                                                                     | ― |   |   |   | 33 |   |   |   | ― |   |   |   | ― |   |   |   | 33 |   |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | 10 |   |   |   | ― |   |   |   | ― |   |   |   | 10 |   |
| Repurchase of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |            | ― |   |         |   | ― |                             |   |   | (1                            | )      |   |                                                                     | ― |   |   |   | (9 | ) |   |   | ― |   |   |   | ― |   |   |   | (9 | ) |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | ― |   |   |   | ― |   |   |   | (32,904 | ) |   |   | (32,904 | ) |
| Balances at December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                             |   |   | 41,939                        |   |   |                                                                     | 42      |   |   |   | 54,983 |   |   |   | ― |   |   |   | (55,572 | ) |   |   | (547 | ) |
| Sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         |   | ― |                             |   |   | 1,513                         |   |   |                                                                     | 1       |   |   |   | 15,127 |   |   |   | ― |   |   |   | ― |   |   |   | 15,128 |   |
| Sale of common stock under warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |            | ― |   |         |   | ― |                             |   |   | 2,886                         |   |   |                                                                     | 3       |   |   |   | 286 |   |   |   | ― |   |   |   | ― |   |   |   | 289 |   |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | 1,155 |   |   |   | ― |   |   |   | ― |   |   |   | 1,155 |   |
| Repurchase of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |            | ― |   |         |   | ― |                             |   |   | (150                          | )      |   |                                                                     | ― |   |   |   | ― |   |   |   | ― |   |   |   | ― |   |   |   | ― |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                             |   |   | ―                       |   |   |                                                                     | ― |   |   |   | ― |   |   |   | ― |   |   |   | (28,235 | ) |   |   | (28,235 | ) |
| Balances at December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                             |   |   | 46,188                        |   |   | $                                                                        | 46      |   |   | $      | 71,551 |   |   | $ | ― |   |   | $ | (83,807 | ) |   | $ | (12,210 | ) |
|                                                                                           |   |            |    |   |         |   |    |                             |   |   |                          |   |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |                                   |   |                          |    |   |   |  Deficit  Accumulated  during the Development  Stage |    |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|---------|----------------------------------------|--------|-------------------------------|---------|--------|--------|-------------------------------------------------------------------------------|---------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |                                   |   |                          |    |   |   |                                                                          |    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |  Additional  Paid-in-Capital |   |                          |    |   |   |                                                                          |    |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Preferred stock |    |   | Common stock |   |    |                                   |   |  Subscription receivable |    |   |   |                                                                          |    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Shares          |    |   | Amount       |   |    | Shares                                 |   |                          | Amount  |   |   |                                                                          |    |   |   |   |   | Total |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            |    |   |         |   |    |                                   |   |                          |    |   |   |                                                                          |    |   |   |   |   |   |   |   |   |   |
| Sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         | $      | ― |                                   |   |                          | 1,822   |   |   | $                                                                             | 2       |   |   | $      | 2,336 |   |   | $ | ― |   |   | $ | ― |   |   | $ | 2,338 |   |
| Sale of common stock under  warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |            |    |   |         |   |    |                                   |   |                          | 1,971   |   |   |                                                                          | 2       |   |   |   | 171 |   |   |   |   |   |   |   | ― |   |   |   | 173 |   |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | 889 |   |   |   | ― |   |   |   | ― |   |   |   | 889 |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | ― |   |   |   | ― |   |   |   | (6,744 | ) |   |   | (6,744 | ) |
| Balances at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                                   |   |                          | 49,981  |   |   |                                                                          | 50      |   |   |   | 74,947 |   |   |   | ― |   |   |   | (90,551 | ) |   |   | (15,554 | ) |
| Sale of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         |   | ― |                                   |   |                          | 5,120   |   |   |                                                                          | 5       |   |   |   | 518 |   |   |   | ― |   |   |   | ― |   |   |   | 523 |   |
| Sale of common stock under  warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |            | ― |   |         |   | ― |                                   |   |                          | 41      |   |   |                                                                          | ― |   |   |   | 4 |   |   |   | ― |   |   |   | ― |   |   |   | 4 |   |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | 469 |   |   |   | ― |   |   |   | ― |   |   |   | 469 |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | ― |   |   |   | ― |   |   |   | (1,986 | ) |   |   | (1,986 | ) |
| Balances at December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                                   |   |                          | 55,142  |   |   |                                                                          | 55      |   |   |   | 75,938 |   |   |   | ― |   |   |   | (92,537 | ) |   |   | (16,544 | ) |
| Sale of common stock, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |            | ― |   |         |   | ― |                                   |   |                          | 6,071   |   |   |                                                                          | 6       |   |   |   | 1,096 |   |   |   | ― |   |   |   | ― |   |   |   | 1,102 |   |
| Sale of common stock under warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |            | ― |   |         |   | ― |                                   |   |                          | 1,448   |   |   |                                                                          | 1       |   |   |   | 143 |   |   |   | ― |   |   |   | ― |   |   |   | 144 |   |
| Issuance of warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | 330 |   |   |   | ― |   |   |   | ― |   |   |   | 330 |   |
| Stock grant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |            | ― |   |         |   | ― |                                   |   |                          | 150     |   |   |                                                                          | ― |   |   |   | 30 |   |   |   | ― |   |   |   | ― |   |   |   | 30 |   |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | 361 |   |   |   | ― |   |   |   | ― |   |   |   | 361 |   |
| Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | ― |   |   |   | ― |   |   |   | 4,987 |   |   |   | 4,987 |   |
| Balances at December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | ― |   |         |   | ― |                                   |   |                          | 62,811  |   |   |                                                                          | 62      |   |   |   | 77,898 |   |   |   | ― |   |   |   | (87,550 | ) |   |   | (9,590 | ) |
|                                                                                           |   |            |    |   |         |   |    |                                   |   |                          |    |   |   |                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale of common stock, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |            | ― |   |         |   | ― |                                   |   |                          | 1,182   |   |   |                                                                          | 1       |   |   |   | 219 |   |   |   | ― |   |   |   | ― |   |   |   | 220 |   |
| Sale of common stock under warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |            | ― |   |         |   | ― |                                   |   |                          | 528     |   |   |                                                                          | 1       |   |   |   | 50 |   |   |   |   |   |   |   |   |   |   |   | 51 |   |
| Issuance of warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | 1,111 |   |   |   | ― |   |   |   | ― |   |   |   | 1,111 |   |
| Recapitalization of Company upon Merger  effective July 29, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |            | ― |   |         |   | ― |                                   |   |                          | 7,695   |   |   |                                                                          | (57     | )      |   |   | (51 | ) |   |   | ― |   |   |   | ― |   |   |   | (108 | ) |
| Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | 231 |   |   |   |   |   |   |   | ― |   |   |   | 231 |   |
| Sale of Preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |            | 1       |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | ― |   |   |   | (104 | ) |   |   | ― |   |   |   | (104 | ) |
| Dividends on convertible preferred stock 4%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |            | 1       |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | ― |   |   |   | ― |   |   |   | (10 | ) |   |   | (10 | ) |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |            | ― |   |         |   | ― |                                   |   |                          | ― |   |   |                                                                          | ― |   |   |   | ― |   |   |   | ― |   |   |   | (2,244 | ) |   |   | (2,244 | ) |
| Balances at December 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |            | 1       |   |         | $      | ― |                                   |   |                          | 72,216  |   |   | $                                                                             | 7       |   |   | $      | 79,458 |   |   | $ | (104 | ) |   | $ | (89,804 | ) |   | $ | (10,443 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                  |   | For the Years Ended December 31, |    |   | Cumulative from Inception (February 27, 2001) to December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                  |   | 2009                             |    |   | 2010                                                          |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                  |   |                             |    |   |                                                          |   |   | (unaudited) |   |
| Cash flows from operating activities                                                                                                                                                                                                                                                                                                                  |   |                             |    |   |                                                          |   |   |   |   |
| Net income (loss)                                                       |   | $                                | 4,987   |   |                                                          | $      | (2,244 | ) |   | $ | (89,794 | ) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities:                                                                                                                                                                                                                                                                  |   |                             |    |   |                                                          |   |   |   |   |   |   |   |
| Depreciation                                                                           |   |                             | 45      |   |                                                          |   | ― |   |   |   | 994 |   |
| Stock-based compensation expense                                                                                                                                                                                                                                                                                                                      |   |                             | 637     |   |                                                          |   | 460 |   |   |   | 4,070 |   |
| Common stock issued in exchange for consulting services                                                                                                                                                                                                                                                                                               |   |                             | ― |   |                                                          |   | ― |   |   |   | 164 |   |
| Loss (gain) on disposal of property and equipment estate                                                                                                                                                                                                                                                                                              |   |                             | (9      | )      |                                                          |   | ― |   |   |   | 169 |   |
| Loss on investment in real estate                                                                                                                                                                                                                                                                                                                     |   |                             | ― |   |                                                          |   | ― |   |   |   | 1,091 |   |
| Gain on restructuring of trade debt                                                                                                                                                                                                                                                                                                                   |   |                             | (6,562  | )      |                                                          |   | (204 | ) |   |   | (6,766 | ) |
| Change in fair value of derivative liability                                                                                                                                                                                                                                                                                                          |   |                             | ― |   |                                                          |   | (2,250 | ) |   |   | (2,250 | ) |
| Interest from derivative liability                                                                                                                                                                                                                                                                                                                    |   |                             | ― |   |                                                          |   | 2,586 |   |   |   | 2,586 |   |
| Changes in operating assets and liabilities:                                                                                                                                                                                                                                                                                                          |   |                             |    |   |                                                          |   |   |   |   |   |   |   |
| Prepaid expenses                                                                                                                                                                                                                                                                                                                                      |   |                             | 36      |   |                                                          |   | 103 |   |   |   | 51 |   |
| Accounts receivable                                                                                   |   |                             | (6      | )      |                                                          |   | 11 |   |   |   | ― |   |
| Security deposits                                                                                     |   |                             | (4      | )      |                                                          |   | (2 | ) |   |   | (6 | ) |
| Other assets                                                                                          |   |                             | 3       |   |                                                          |   | ― |   |   |   | ― |   |
| Accounts payable                                                                                      |   |                             | 90      |   |                                                          |   | 211 |   |   |   | 7,737 |   |
| Accrued expenses                                                                                      |   |                             | 512     |   |                                                          |   | 11 |   |   |   | 2,453 |   |
| Deferred purchase credit                                                                                                                                                                                                                                                                                                                              |   |                             | ― |   |                                                          |   | ― |   |   |   | 500 |   |
| Deferred revenue                                                                                                                                                                                                                                                                                                                                      |   |                             | ― |   |                                                          |   | ― |   |   |   | 1,727 |   |
| Accrued compensation                                                                                                                                                                                                                                                                                                                                  |   |                             | (351    | )      |                                                          |   | ― |   |   | ― |   |
| Net cash used in operating activities                                                                                                                                                                                                                                                                                                                 |   |                             | (622    | )      |                                                          |   | (1,318 | ) |   |   | (77,274 | ) |
| Cash flows from investing activities                                                                                                                                                                                                                                                                                                                  |   |                             |    |   |                                                          |   |   |   |   |   |   |   |
| Purchase of property and equipment                                                                                                                                                                                                                                                                                                                    |   |                             | ― |   |                                                          |   | (2 | ) |   |   | (1,195 | ) |
| Purchase of real estate investment                                                                                                                                                                                                                                                                                                                    |   |                             | ― |   |                                                          |   | ― |   |   |   | (3,155 | ) |
| Proceeds from the sale of property and equipment                                                                                                                                                                                                                                                                                                      |   |                             | 10      |   |                                                          |   | ― |   |   |   | 50 |   |
| Proceeds from the sale of real estate                                                                                                                                                                                                                                                                                                                 |   |                             | ― |   |                                                          |   | ― |   |   |   | 2,064 |   |
| Net cash provided by (used in) investing activities                                                                                                                                                                                                                                                                                                   |   | $                                | 10      |   |                                                          | $      | (2 | ) |   | $ | (2,236 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                       |   | For the Years Ended December 31, |    |   | Cumulative from Inception (February 27, 2001) to December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2009                             |    |   | 2010                                                          |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                             |    |   |                                                          |   |   | (unaudited) |   |
| Cash flows from financing activities                                                                                                                                                                                                                                                                                                                                                                       |   |                             |    |   |                                                          |   |   |   |   |
|     Issuance of common stock                                                                                                                                                                                                                                                                                                                                                                |   | $                                | 1,246   |   |                                                          | $      | 272 |   |   | $ | 74,762 |   |
| Issuance of preferred stock                                                                                                                                                                                                                                                                                                                                                                                |   |                             | ― |   |                                                          |   | 896 |   |   |   | 896 |   |
| Issuance of notes payable                                                                                                                                                                                                                                                                                                                                                                                  |   |                             | ― |   |                                                          |   | ― |   |   |   | 5,011 |   |
| Issuance of long-term debt                                                                                                                                                                                                                                                                                                                                                                                 |   |                             | ― |   |                                                          |   | ― |   |   |   | 592 |   |
| Payments on notes payable                                                                                                                                                                                                                                                                                                                                                                                  |   |                             | (8      | )      |                                                          |   | (477 | ) |   |   | (1,342 | ) |
| Payments on capital lease obligation                                                                                                                                                                                                                                                                                                                                                                       |   |                             | ― |   |                                                          |   | ― |   |   |   | (16 | ) |
| Repurchase of common stock                                                                                                                                                                                                                                                                                                                                                                                 |   |                             | ― |   |                                                          |   | ― |   |   |   | (388 | ) |
| Repayments of notes payable to related parties                                                                                                                                                                                                                                                                                                                                                             |   |                             | ― |   |                                                          |   | ― |   |   |   | (202 | ) |
| Payments on long-term debt                                                                                                                                                                                                                                                                                                                                                                                 |   |                             | ― |   |                                                          |   | ― |   |   |   | (3 | ) |
| Proceeds from notes payable to related parties                                                                                                                                                                                                                                                                                                                                                             |   |                             | ― |   |                                                          |   | ― |   |   |   | 202 |   |
| Repayment of mortgage note payable                                                                                                                                                                                                                                                                                                                                                                         |   |                             | ― |   |                                                          |   | ― |   |   |   | (3,100 | ) |
| Proceeds from the issuance of mortgage note                                                                                                                                                                                                                                                                                                                                                                |   |                             | ― |   |                                                          |   | ― |   |   |   | 3,100 |   |
| Net cash provided by financing activities                                                                                                                                                                                                                                                                                                                                                                  |   |                             | 1,238   |   |                                                          |   | 691 |   |   |   | 79,512 |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                       |   |                             | 626     |   |                                                          |   | (629 | ) |   |   | 2 |   |
| Cash and cash equivalents, beginning of period                                                                                                                                                                                                                                                                                                                                                             |   |                             | 5       |   |                                                          |   | 631 |   |   |   | ― |   |
| Cash and cash equivalents, end of period                                                                                                                                                                                                                                                                                                                                                                   |   | $                                | 631     |   |                                                          | $      | 2 |   |   | $ | 2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                             |    |   |                                                          |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                       |   |                             |    |   |                                                          |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                                                                                                                                                                                                                                                                                                                          |   |                             |    |   |                                                          |   |   |   |   |   |   |   |
| Cash paid for interest                                                               |   | $                                | ― |   |                                                          | $      | 15 |   |   | $ | 257 |   |
| Non-cash financing activities:                                                                                                                                                                                                                                                                                                                                                                             |   |                             |    |   |                                                          |   |   |   |   |   |   |   |
| Conversion of trade payables to notes                                                                                                                                                                                                                                                                                                                                                                      |   | $                                | 238     |   |                                                          | $      | ― |   |   | $ | 5,603 |   |
| Restructuring of trade debt                                                                                                                                                                                                                                                                                                                                                                                |   | $                                | 6,562   |   |                                                          | $      | 204 |   |   | $ | 6,766 |   |
| Issuance of warrant for accrued liability                                                                                                                                                                                                                                                                                                                                                                  |   | $                                | ― |   |                                                          | $      | 129 |   |   | $ | 129 |   |
| Issuance of warrants for prepaid asset                                                                                                                                                                                                                                                                                                                                                                     |   | $                                | ― |   |                                                          | $      | (881 | ) |   | $ | (881 | ) |
| Net liabilities acquired in Merger Transaction                                                                                                                                                                                                                                                                                                                                                             |   | $                                | ― |   |                                                          | $      | (92 | ) |   | $ | (92 | ) |
| Subscription receivable for issuance of preferred stock                                                                                                                                                                                                                                                                                                                                                    |   | $                                | ― |   |                                                          | $      | 104 |   |   | $ | 104 |   |

----

----

|     ·       | Level 1 — Quoted prices in active markets for identical assets or liabilities |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|

|     ·       | Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2009         |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |         |   |   |   |   |
| Prepaid insurance premiums                                                                                                                                                                                                       |   | $            | -      |   |   | $ | 28 |   |
| Deposits for professional services                                                                       |   |         | 52     |   |   |   | 4 |   |
| Beneficial warrants issued for investment advisory services  (Note  8)                                                                                                                                                                                                                                                                                                                                                                             |   |         | 83     |   |   |   | - |   |
| Prepaid financing costs represented by warrants issued under Equity Credit Agreement (Note 7)                                                                                                                                                                                                                                                                                                                                                                          |   |         | -      |   |   |   | 881 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |         | 135    |   |   |   | 913 |   |
| Less: Non-current portion                                                                                |   |         | -      |   |   |   | (612 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $            | 135    |   |   | $ | 301 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2009         |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |         |   |   |   |   |
| Furniture and office equipment                                                                   |   | $            | 106    |   |   | $ | 2 |   |
| Laboratory and manufacturing equipment                                                                                                                                                                                                                                                                                                                                                                                                     |   |         | 241    |   |   |   | 241 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |         | 347    |   |   |   | 243 |   |
| Accumulated depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                  |   |         | (347   | ) |   |   | (241 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $            | -      |   |   | $ | 2 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2009         |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |         |   |   |   |   |
| Development and clinical trial expenses                                                                  |   | $            | 773    |   |   | $ | 773 |   |
| Interest                                                                                                 |   |         | 424    |   |   |   | 448 |   |
| Dividends payable (Note 9)                                                                               |   |         | -      |   |   |   | 10 |   |
| Professional fees                                                                                        |   |         | 35     |   |   |   | - |   |
| Costs associated with equity raise                                                                       |   |         | 113    |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $            | 1,345  |   |   | $ | 1,231 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2009         |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         |   |   |   |   |
| Notes payable to clinical research sites                                                                                               |   | $            | 407    |   |   | $ | 405 |   |
| Promissory Note dated September 15, 2006                                                                                               |   |         | 2,000  |   |   |   | 1,925 |   |
| Promissory Installment Note dated September 26, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         | 924    |   |   |   | 500 |   |
| Promissory Note dated July 1, 2007                                                                                                     |   |         | 300    |   |   |   | 300 |   |
| Promissory Note dated August  21, 2007                                                                                       |   |         | 420    |   |   |   | 420 |   |
| Promissory Note and Security Agreement dated September 22, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |         | 26     |   |   |   | 26 |   |
| Default judgment dated October 29, 2009                                                                                                |   |         | 99     |   |   |   | 99 |   |
| Promissory note dated July 29, 2010                                                                                                    |   |         | -      |   |   |   | 100 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |         | 4,176  |   |   |   | 3,775 |   |
| Less: Current portion of notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |         | 2,426  |   |   |   | 2,525 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $            | 1,750  |   |   | $ | 1,250 |   |

----

----

| 2011 |   | $      | 2,525 |   |
|------|--------|--------|-------|--------|
| 2012 |   |   | 1,250 |   |
| 2013 |   |   | -     |   |
| 2015 |   |   | -     |   |
| 2016 |   |   | -     |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                     |   | Shares      |   |   | Proceeds    |   |   | Price per share |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|-------------|--------|--------|-----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                     |   | (unaudited) |   |   | (unaudited) |   |   | (unaudited)     |   |
| March through August 2001                                                              |   |        | 1,268  |   |        | $      | 846    |            |   | $ | 0.66 |   |
| November 2001                                                                          |   |        | 4      |   |        |   | 3      |            |   |   | 0.83 |   |
| January through July 2002                                                              |   |        | 2,591  |   |        |   | 2,158  |            |   |   | 0.83 |   |
| August through December 2002                                                           |   |        | 1,463  |   |        |   | 1,951  |            |   |   | 1.33 |   |
| January through May 2003                                                               |   |        | 1,719  |   |        |   | 2,292  |            |   |   | 1.33 |   |
| June through October 2003                                                              |   |        | 2,581  |   |        |   | 5,162  |            |   |   | 2.00 |   |
| December 2003                                                                          |   |        | 164    |   |        |   | 410    |            |   |   | 2.50 |   |
| January through April 2004                                                             |   |        | 3,371  |   |        |   | 8,429  |            |   |   | 2.50 |   |
| February through July 2004                                                             |   |        | 1,017  |   |        |   | 4,066  |            |   |   | 4.00 |   |
| January through March 2005                                                             |   |        | 2,102  |   |        |   | 16,814 |            |   |   | 8.00 |   |
| June through July 2005                                                                 |   |        | 1,203  |   |        |   | 12,028 |            |   |   | 10.00 |   |

----

|                                                                                                                                                                         |   |   | December 31,  |   |   |   |       |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|--------|--------|------------|--------|--------|
|                                                                                                                                                                         |   |   | 2009          |   |   |   | 2010  |   |   |   | Exercise Price  |   | Expiration Date |
| Warrants issued January 2006 through May 2007 in conjunction with private placement of common stock.                                                                         |   |   | 3,615,700          |   |   |   | 3,095,800  |   |   | $ | 0.10 |   | December 31, 2011 |
|                                                                                                                                                                         |   |   |               |   |   |   |       |   |   |   |   |   |   |
| Warrants issued to select vendors to satisfy, in part, liabilities generated from services performed in conjunction with our terminated Phase III clinical trial, VP-AD-301. |   |   | 54,800             |   |   |   | 54,800     |   |   | $ | 0.50 |   | December 31, 2011 |
|                                                                                                                                                                         |   |   |               |   |   |   |       |   |   |   |   |   |   |
| Warrants issued under Transaction Management Agreement executed with Southridge.                                                                                             |   |   | 1,656,500          |   |   |   | 2,149,100  |   |   | $ | 0.001 |   | August 31, 2016 |
|                                                                                                                                                                         |   |   |               |   |   |   |       |   |   |   |   |   |   |
| Warrants issued to outside consultants for services rendered in connection with the financing round completed on February 5, 2010.                                           |   |   | -                  |   |   |   | 844,400    |   |   | $ | 0.22 |   | August 31, 2016 |
|                                                                                                                                                                         |   |   |               |   |   |   |       |   |   |   |   |   |   |
| Warrants issued as consideration for the cancellation of 181,285,000 shares of common stock upon consummation of the Merger transaction effective July 29, 2010.             |   |   | -                  |   |   |   | 3,589,500  |   |   | $ | 0.001 |   | July 29, 2017 |
|                                                                                                                                                                         |   |   |               |   |   |   |       |   |   |   |   |   |   |
| Warrants issued to Southridge under the Transaction Management Agreement upon execution of Equity Credit Agreement dated September 16, 2010.                                 |   |   | -                  |   |   |   | 820,800    |   |   | $ | 1.52 |   | September 15, 2015 |
|                                                                                                                                                                         |   |   |               |   |   |   |       |   |   |   |   |   |   |
| Warrants issued August 31, 2010 to outside vendor for development of the Company’s website.                                                                            |   |   | -                  |   |   |   | 100,000    |   |   | $ | 0.30 |   | August 31, 2015 |
|                                                                                                                                                                         |   |   | 5,327,000          |   |   |   | 10,654,400 |   |   |   |   |   |   |

----

|                               |   | Level 2 -   At December 31, |   |
|------------------------------------|--------|---------------------------------------|--------|
|                               |   | 2010                                  |   |   | 2009 |   |
|                               |   |                                  |   |
| Derivative instruments (long term) |   | $                                     | 1,336  |   |   | $ | 0 |   |
|                               |   |                                  |   |   |   |   |   |   |
| Total                              |   | $                                     | 1,336  |   |   | $ | 0 |   |

----

|                                          |   | Year ended December 31, |   |
|-----------------------------------------------|--------|-------------------------|--------|
|                                          |   | 2009                    |   |   | 2010 |   |
|                                          |   |                    |   |   |   |   |
| Employee-related stock-based compensation     |   | $                       | 391    |   |   | $ | 231 |   |
| Non-employee related stock based compensation |   |                    | 246    |   |   |   | 229 |   |
|                                          |   | $                       | 637    |   |   | $ | 460 |   |

|                     |   | Year ended December 31, |   |
|--------------------------|--------|-------------------------|--------|
|                     |   | 2009                    |   |   | 2010 |   |
|                     |   |                    |   |   |   |   |
| Risk-free interest rate  |   | 2.28 to 3.06%           |   |   | 2.15 to 3.20% |   |
| Expected term (in years) |   |                    | 7.5    |   |   |   | 7.5 |   |
| Expected volatility      |   |                    | 100    | % |   |   | 100 | % |
| Expected dividends       |   |                    | 0      | % |   |   | 0 | % |

----

|                                        |   |    Number of Shares |      |   |   Weighted Average Exercise Price |   |   |   Weighted-Average Contractual Term |   |   | Weighted Average Grant Date Fair Value per Share |   |
|---------------------------------------------|--------|------------------------------------|-----------|--------|---------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------------------|--------|
| Outstanding at December 31, 2008            |   |                               | 2,897,000 |   |                                        | $      | 2.21   |                                          |   |   | 5.69                                             |   |   | $ | 1.26 |   |
| Options granted                             |   |                               | 550,000   |   |                                        | $      | 0.20   |                                          |   |   |                                             |   |   |   |   |   |
| Options cancelled                           |   |                               | (170,000  | )      |                                        | $      | 2.19   |                                          |   |   |                                             |   |   |   |   |   |
| Outstanding at December 31, 2009            |   |                               | 3,277,000 |   |                                        | $      | 1.87   |                                          |   |   | 5.15                                             |   |   | $ | 1.07 |   |
| Options granted                             |   |                               | 260,000   |   |                                        | $      | 0.20   |                                          |   |   |                                             |   |   |   |   |   |
| Options cancelled                           |   |                               | (9,000    | )      |                                        | $      | 0.20   |                                          |   |   |                                             |   |   |   |   |   |
| Outstanding at December 31,  2010 |   |                               | 3,528,000 |   |                                        | $      | 1.75   |                                          |   |   | 4.54                                             |   |   | $ | 1.07 |   |
|                                        |   |                               |      |   |                                        |   |   |                                          |   |   |                                             |   |   |   |   |   |
| Exercisable at December 31, 2010            |   |                               | 3,122,000 |   |                                        | $      | 1.90   |                                          |   |   | 4.03                                             |   |   | $ | 1.08 |   |

|                            |   |   |     |   | Weighted-       |   |
|---------------------------------|--------|--------|----------|--------|-----------------|--------|
|                            |   |   |     |   | Average Grant   |   |
|                            |   | Shares |     |   | Date Fair Value |   |
|                            |   |   |     |   |            |   |
| Non-vested at January 1, 2010   |   |   | 330,000  |   |            | $      | 1.29 |   |
| Options Granted                 |   |   | 260,000  |   |            |   | 1.06 |   |
| Options vested                  |   |   | (175,000 | )      |            |   | (1.56 | ) |
| Options cancelled               |   |   | (9,000   | )      |            |   | (0.17 | ) |
| Non-vested at December 31, 2009 |   |   | 406,000  |   |            | $      | 1.05 |   |

----

|                                                 |   | at December 31, |   |
|------------------------------------------------------|--------|-----------------|--------|
|                                                 |   | 2009            |   |   | 2010 |   |
|                                                 |   |            |   |   |   |   |
| Weighted average common shares outstanding           |   |            | 57,699 |   |   |   | 67,323 |   |
| Dilutive securities - Options                        |   |            | 370    |   |   |   | - |   |
| Dilutive securities - Warrants                       |   |            | 2,632  |   |   |   | - |   |
| Diluted average common stock equivalents outstanding |   |            | 60,701 |   |   |   | 67,323 |   |

|                                      |   | at December 31, |   |
|-------------------------------------------|--------|-----------------|--------|
|                                      |   | 2009            |   |   | 2010 |   |
|                                      |   |            |   |   |   |   |
| Outstanding stock options                 |   |            | 2,907  |   |   |   | 3,528 |   |
| Outstanding warrants                      |   |            | 2,695  |   |   |   | 10,654 |   |
| Outstanding preferred stock at conversion |   |            | -      |   |   |   | 2,429 |   |
|                                      |   |            | 5,602  |   |   |   | 16,611 |   |

|                                            |   | December 31, |    |
|-------------------------------------------------|--------|--------------|---------|
|                                            |   | 2009         |    |   | 2010 |   |
| Deferred tax assets                             |   |         |    |   |   |   |
|  Domestic and operating loss carryforwards |   | $            | 31,785  |   |   | $ | 32,476 |   |
| Research and development credits                |   |         | 2,756   |   |   |   | 2,756 |   |
| Contributions                                   |   |         | 53      |   |   |   | 28 |   |
| Fixed assets                                    |   |         | 23      |   |   |   | 4 |   |
| Stock based compensation                        |   |         | 1,110   |   |   |   | 1,201 |   |
| Derivative liabilities                          |   |         | ― |   |   |   | 129 |   |
| Total deferred tax asset                        |   |         | 35,727  |   |   |   | 36,594 |   |
| Valuation allowance for deferred assets         |   |         | (35,727 | ) |   |   | (36,594 | ) |
| Net deferred tax asset                          |   | $            | ― |   |   | $ | ― |   |

----

|                                                                                                                                                                                                                                                                                                                                         |   | 2009   |    |   | % ofpretaxloss |   |    | 2010   |   |   | % ofpretaxloss |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|----------------|--------|---------|--------|--------|--------|----------------|--------|
| United States Federal tax (benefit) at statutory rate                                                                                                                                                                                                                                                                                        |   | $      | 1,706   |   |           |   | 34.0    |   |   | $      | (763           | )      |   |   | (34.0 | ) |
| State taxes (benefit) (net of federal benefit                                                                                                                                                                                                                                                                                                |   |   | 77      |   |           |   | 1.6     |   |   |   | (35            | )      |   |   | (1.6 | ) |
| Change in valuation reserve                                                                                                                                                                                                                                                                                                                  |   |   | (1,937  | )      |           |   | (38.6   | )      |   |   | 867            |   |   |   | 38.6 |   |
| Other non-deductible expenses                                                                                                                                                                                                                                                                                                                |   |   | 154     |   |           |   | 3.0     |   |   |   | (69            | )      |   |   | (3.0 | ) |
| Provision for income taxes                                                    |   | $      | ― |   |           |   | ― |   |   | $      | ―        |   |   |   | ― |   |

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