----

| x | ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
|---|---------------------------------------------------------------------------------|

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

|   | For the transition period from ___________ to _____________ |
|--------|-------------------------------------------------------------|

| SENESCO TECHNOLOGIES, INC.                             |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Delaware                        |         | 84-1368850                           |
|---------------------------------|--------------|--------------------------------------|
| (State or other jurisdiction of |         | (I.R.S. Employer Identification No.) |
| incorporation or organization)  |    |                                 |

| 721 Route 202/206, Suite 130, Bridgewater, New Jersey | 08807      |
|-------------------------------------------------------|------------|
| (Address of principal executive offices)              | (Zip Code) |

| (908) 864-4444                        |
|---------------------------------------|
| (Registrant’s telephone number, |
| including area code)                  |

| Title of each class                     |         | Name of each exchange on which registered |
|-----------------------------------------|--------------|-------------------------------------------|
|                                    |         |                                      |
| Common Stock, $0.01 par value pershare. |    | NYSE Amex                                 |

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

| Class                            |   | Number of Shares |       |
|----------------------------------|--------|------------------|------------|
|                             |   |             |       |
| Common Stock, $0.01 par value    |   |             | 79,626,675 |   |
| Preferred Stock, $0.01 par value |   |             | 4,860      |   |

----

|                 | Item   | Page                                                                                                               |
|----------------------|--------|--------------------------------------------------------------------------------------------------------------------|
|                 |   |                                                                                                               |   |
| PART I               | 1.     | Business                                                                                                           | 1 |
|                 |   |                                                                                                               |   |
|                 | 1A.    | Risk Factors                                                                                                       | 12 |
|                 |   |                                                                                                               |   |
|                 | 1B.    | Unresolved Staff Comments                                                                                          | 27 |
|                 |   |                                                                                                               |   |
|                 | 2.     | Properties                                                                                                         | 27 |
|                 |   |                                                                                                               |   |
|                 | 3.     | Legal Proceedings                                                                                                  | 27 |
|                 |   |                                                                                                               |   |
|                 | 4.     | Removed and Reserved                                                                                               | 27 |
|                 |   |                                                                                                               |   |
| PART II              | 5.     | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 28 |
|                 |   |                                                                                                               |   |
|                 | 6.     | Selected Financial Data                                                                                            | 31 |
|                 |   |                                                                                                               |   |
|                 | 7.     | Management's Discussion and Analysis of Financial Condition and Results of Operations                              | 32 |
|                 |   |                                                                                                               |   |
|                 | 7A.    | Quantitative and Qualitative Disclosures About Market Risk                                                         | 47 |
|                 |   |                                                                                                               |   |
|                 | 8.     | Financial Statements and Supplementary Data                                                                        | 48 |
|                 |   |                                                                                                               |   |
|                 | 9.     | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 48 |
|                 |   |                                                                                                               |   |
|                 | 9A.    | Controls and Procedures                                                                                            | 48 |
|                 |   |                                                                                                               |   |
|                 | 9B.    | Other Information                                                                                                  | 49 |
|                 |   |                                                                                                               |   |
| PART III             | 10.    | Directors, Executive Officers and Corporate Governance                                                             | 50 |
|                 |   |                                                                                                               |   |
|                 | 11.    | Executive Compensation                                                                                             | 50 |
|                 |   |                                                                                                               |   |
|                 | 12.    | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 50 |
|                 |   |                                                                                                               |   |
|                 | 13.    | Certain Relationships and Related Transactions and Director Independence                                           | 50 |
|                 |   |                                                                                                               |   |
|                 | 14.    | Principal Accounting Fees and Services                                                                             | 50 |
|                 |   |                                                                                                               |   |
| PART IV              | 15.    | Exhibits and Financial Statement Schedules                                                                         | 51 |
|                 |   |                                                                                                               |   |
| SIGNATURES           | 52     |
|                 |   |
| FINANCIAL STATEMENTS | F-1    |

----

----

----

|   | o | Multiple Myeloma.  Continue a Phase 1b/2a clinical trial.  In connection with the potential clinical trial, we have engaged Criterium to manage the operational aspects of the Phase 1b/2a clinical study.  We have also entered into an agreement with Mayo Clinic to be a clinical site and plan on adding an additional site.  The study opened in September 2011 and we are currently screening patients.  We estimate that it will take approximately one year to complete this study. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Other B cell cancers. |
|--------|---|-----------------------|

|   | o | Other cancers. |
|--------|---|----------------|

|   | o | Other.  We may consider other human diseases in which Factor 5A, siRNA against Factor 5A and SNS01-T may have a therapeutic effect. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | o | Entering into strategic alliances, including licensing technology to major marketing and distribution partners; or |
|--------|---|--------------------------------------------------------------------------------------------------------------------|

|   | o | Developing in-house production and marketing capabilities. |
|--------|---|------------------------------------------------------------|

|   | · | further develop and implement the DHS and Factor 5A gene technology in banana, canola, cotton, turfgrass, rice, alfalfa, corn, soybean and trees; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | test the resultant crops for new beneficial traits such as increased yield, increased tolerance to environmental stress, disease resistance and more efficient use of fertilizer. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | licensing technology to major marketing and distribution partners; |
|--------|--------|--------------------------------------------------------------------|

|   | · | entering into strategic alliances; or |
|--------|--------|---------------------------------------|

|   | · | developing in-house production and marketing capabilities. |
|--------|--------|------------------------------------------------------------|

| Seed Transformation | approximately 1 to 2 years |
|---------------------|----------------------------|
| Greenhouse          | approximately 1 to 2 years |
| Field Trials        | approximately 2 to 5 years |

----

| Project                          |         | Partner            |         | Status       |
|----------------------------------|--------------|--------------------|--------------|--------------|
|                             |         |               |         |         |
| Banana                           |         | Rahan Meristem     |         |         |
|   - Shelf Life         |         |               |         | Field trials |
|   - Disease Resistance |         |               |         | Field trials |
| Trees                            |         | Arborgen           |         |         |
|   - Growth             |         |               |         | Field trials |
| Alfalfa                          |         | Cal/West           |         | Field trials |
| Corn                             |         | Monsanto           |         | Field trials |
| Cotton                           |         | Bayer              |         | Greenhouse   |
| Canola                           |         | Bayer              |         | Field trials |
| Rice                             |         | Bayer              |         | Greenhouse   |
| Soybean                          |         | Monsanto           |         | Field trials |
| Turfgrass                        |         | The Scotts Company |         | Greenhouse   |
| Ethanol                          |    | Poet               |    | Discontinued |

----

----

|   | · | Alan Bennett, Ph.D., who serves as the Chairman of the Scientific Advisory Board, is the Associate Vice Chancellor of the Office of Technology Transfer at the University of California.  His research interests include the molecular biology of tomato fruit development and ripening, the molecular basis of membrane transport, and cell wall disassembly. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Charles A. Dinarello, M.D., who serves as a member of the Scientific Advisory Board, is a Professor of Medicine at the University of Colorado School of Medicine, a member of the U.S. National Academy of Sciences and the author of over 500 published research articles.  In addition to his active academic research career, Dr. Dinarello has held advisory positions with two branches of the National Institutes of Health and positions on the Board of Governors of both the Weizmann Institute and Ben Gurion University. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | James E. Mier, M.D., who serves as a member of the Scientific Advisory Board, is an Associate Professor of Medicine at Beth Israel Deaconess Medical Center, a teaching hospital of Harvard Medical School. He is also a practicing physician in the Division of Hematology-Oncology at Beth Israel. Dr. Mier’s research is funded by the NIH and he is a member of numerous professional societies. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | o | delay, scale-back or eliminate some or all of our research and product development programs; |
|--------|---|----------------------------------------------------------------------------------------------|

|   | o | provide licenses to third parties to develop and commercialize products or technologies that we would otherwise seek to develop and commercialize ourselves; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | seek strategic alliances or business combinations; |
|--------|---|----------------------------------------------------|

|   | o | attempt to sell our company; |
|--------|---|------------------------------|

|   | o | cease operations; or |
|--------|---|----------------------|

|   | o | declare bankruptcy. |
|--------|---|---------------------|

----

----

|   | o | delay, scale back or eliminate some or all of our research and development programs; |
|--------|---|--------------------------------------------------------------------------------------|

|   | o | provide a license to third parties to develop and commercialize our technology that we would otherwise seek to develop and commercialize ourselves; |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | seek strategic alliances or business combinations; |
|--------|---|----------------------------------------------------|

|   | o | attempt to sell our company; |
|--------|---|------------------------------|

|   | o | cease operations; or |
|--------|---|----------------------|

|   | o | declare bankruptcy. |
|--------|---|---------------------|

----

|   | o | the scope of our research and development; |
|--------|---|--------------------------------------------|

|   | o | our ability to attract business partners willing to share in our development costs; |
|--------|---|-------------------------------------------------------------------------------------|

|   | o | our ability to successfully commercialize our technology; |
|--------|---|-----------------------------------------------------------|

|   | o | competing technological and market developments; |
|--------|---|--------------------------------------------------|

|   | o | our ability to enter into collaborative arrangements for the development, regulatory approval and commercialization of other products; and |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights. |
|--------|---|----------------------------------------------------------------------------------------------------------------|

|   | o | our ability to obtain patent protection for our technologies and processes; |
|--------|---|-----------------------------------------------------------------------------|

|   | o | our ability to preserve our trade secrets; and |
|--------|---|------------------------------------------------|

|   | o | our ability to operate without infringing the proprietary rights of other parties both in the United States and in foreign countries. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------|

----

|   | o | our patent applications will result in the issuance of patents; |
|--------|---|-----------------------------------------------------------------|

|   | o | any patents issued or licensed to us will be free from challenge and if challenged, would be held to be valid; |
|--------|---|----------------------------------------------------------------------------------------------------------------|

|   | o | any patents issued or licensed to us will provide commercially significant protection for our technology, products and processes; |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------|

|   | o | other companies will not independently develop substantially equivalent proprietary information which is not covered by our patent rights; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | other companies will not obtain access to our know-how; |
|--------|---|---------------------------------------------------------|

|   | o | other companies will not be granted patents that may prevent the commercialization of our technology; or |
|--------|---|----------------------------------------------------------------------------------------------------------|

|   | o | we will not incur licensing fees and the payment of significant other fees or royalties to third parties for the use of their intellectual property in order to enable us to conduct our business. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | o | the United States Department of Agriculture, or USDA, regulates the import, field testing and interstate movement of specific types of genetic engineering that may be used in the creation of transgenic plants; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | the United States Environmental Protection Agency, or EPA, regulates activity related to the invention of plant pesticides and herbicides, which may include certain kinds of transgenic plants; and |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | the FDA regulates foods derived from new plant varieties. |
|--------|---|-----------------------------------------------------------|

----

|   | · | we may discover that the product candidate does not exhibit the expected therapeutic results in humans, may cause harmful side effects or have other unexpected characteristics that may delay or preclude regulatory approval or limit commercial use if approved; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the results from early clinical trials may not be statistically significant or predictive of results that will be obtained from expanded advanced clinical trials; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | institutional review boards or regulators, including the FDA, may hold, suspend or terminate our clinical research or the clinical trials of our product candidate for various reasons, including noncompliance with regulatory requirements or if, in their opinion, the participating subjects are being exposed to unacceptable health risks; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | subjects may drop out of our clinical trials; |
|--------|--------|-----------------------------------------------|

----

|   | · | our preclinical studies or clinical trials may produce negative, inconsistent or inconclusive results, and we may decide, or regulators may require us, to conduct additional preclinical studies or clinical trials; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | o | occurrence of unacceptable toxicities or side effects; |
|--------|---|--------------------------------------------------------|

|   | o | ineffectiveness of the product candidate; |
|--------|---|-------------------------------------------|

|   | o | negative or inconclusive results from the clinical trials, or results that necessitate additional studies or clinical trials; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------|

|   | o | delays in obtaining or maintaining required approvals from institutions, review boards or other reviewing entities at clinical sites; |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------|

|   | o | delays in patient enrollment; or |
|--------|---|----------------------------------|

|   | o | insufficient funding or a reprioritization of financial or other resources. |
|--------|---|-----------------------------------------------------------------------------|

|   | · | obtaining an effective IND or regulatory approval to commence a clinical trial; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | negotiating acceptable clinical trial agreement terms with prospective trial sites; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | obtaining institutional review board approval to conduct a clinical trial at a prospective site; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | recruiting qualified subjects to participate in clinical trials; |
|--------|--------|------------------------------------------------------------------|

|   | · | competition in recruiting clinical investigators; |
|--------|--------|---------------------------------------------------|

|   | · | shortage or lack of availability of supplies of drugs for clinical trials; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | the need to repeat clinical trials as a result of inconclusive results or poorly executed testing; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | the placement of a clinical hold on a study; |
|--------|--------|----------------------------------------------|

|   | · | the failure of third parties conducting and overseeing the operations of our clinical trials to perform their contractual or regulatory obligations in a timely fashion; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | exposure of clinical trial subjects to unexpected and unacceptable health risks or noncompliance with regulatory requirements, which may result in suspension of the trial. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | o | quarterly variations in operating results; |
|--------|---|--------------------------------------------|

|   | o | the progress or perceived progress of our research and development efforts; |
|--------|---|-----------------------------------------------------------------------------|

|   | o | changes in accounting treatments or principles; |
|--------|---|-------------------------------------------------|

|   | o | announcements by us or our competitors of new technology, product and service offerings, significant contracts, acquisitions or strategic relationships; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | additions or departures of key personnel; |
|--------|---|-------------------------------------------|

|   | o | future offerings or resales of our common stock or other securities; |
|--------|---|----------------------------------------------------------------------|

|   | o | stock market price and volume fluctuations of publicly-traded companies in general and development companies in particular; and |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------|

|   | o | general political, economic and market conditions. |
|--------|---|----------------------------------------------------|

----

| Item 1B. | Unresolved Staff Comments. |
|----------|----------------------------|

| Item 2. | Properties. |
|---------|-------------|

| Item 3. | Legal Proceedings. |
|---------|--------------------|

| Item 4. | Removed and Reserved. |
|---------|-----------------------|

----

| Item 5. | Market for Registrant’s Common Equity, Related Stockholder  Matters and Issuer Purchases of Equity Securities. |
|---------|--------------------------------------------------------------------------------------------------------------------------------|

| QuarterEnded       |   | CommonStock |   |
|--------------------|--------|-------------|--------|
|               |   | High        |   |   | Low |   |
|               |   |        |   |   |   |   |
| September 30, 2009 |   | $           | 0.83   |   |   | $ | 0.43 |   |
| December 31, 2009  |   | $           | 0.49   |   |   | $ | 0.30 |   |
| March 31, 2010     |   | $           | 0.51   |   |   | $ | 0.25 |   |
| June 30, 2010      |   | $           | 0.75   |   |   | $ | 0.30 |   |
| September 30, 2010 |   | $           | 0.42   |   |   | $ | 0.25 |   |
| December 31, 2010  |   | $           | 0.33   |   |   | $ | 0.22 |   |
| March 31, 2011     |   | $           | 0.36   |   |   | $ | 0.23 |   |
| June 30, 2011      |   | $           | 0.32   |   |   | $ | 0.24 |   |

----

----

|                                                       |   | Number of securitiesto be issued upon exercise of outstanding options, warrants and rights and restrictedstock units |       |   | Weighted-averageexercise price of outstanding options, warrants and rights andrestricted stock units |   |    | Number of securitiesremainingavailable for futureissuanceunder equitycompensation plans |   |
|------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-------------------------------------------------------------------------------------------------------------|--------|
|                                                       |   |                                                                                                                                                                                  |       |   |                                                                                                                                         |   |    |                                                                                                        |   |
| Equity compensation plans approved by security holders     |   |                                                                                                                                                                                  | 11,348,314 | (1)    |                                                                                                                                         | $      | 0.78    |                                                                                                        |   |   | 14,643,289 | (2) |
|                                                       |   |                                                                                                                                                                                  |       |   |                                                                                                                                         |   |    |                                                                                                        |   |   |   |   |
| Equity compensation plans not approved by security holders |   |                                                                                                                                                                                  | —    |   |                                                                                                                                         |   | — |                                                                                                        |   |   | — |   |
|                                                       |   |                                                                                                                                                                                  |       |   |                                                                                                                                         |   |    |                                                                                                        |   |   |   |   |
| Total                        |   |                                                                                                                                                                                  | 11,348,314 | (1)    |                                                                                                                                         | $      | 0.78    |                                                                                                        |   |   | 14,643,289 | (2) |

----

|                             |   | 7/1/06 |   |   | 6/30/07 |   |   | 6/30/08 |   |   | 6/30/09 |   |   | 6/30/10 |   |   | 6/30/11 |   |
|----------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                             |   |   |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Senesco Technologies, Inc.       |   | $      | 100.00 |   |    | $      | 60.53  |    |   | $      | 97.37   |   |   | $       | 43.68  |   |    | $      | 16.58 |   |   | $ | 14.74 |   |
| NYSE Amex Composite Index        |   | $      | 100.00 |   |    | $      | 125.56 |    |   | $      | 124.38  |   |   | $       | 91.52  |   |    | $      | 108.41 |   |   | $ | 138.09 |   |
| RDG Microcap Biotechnology Index |   | $      | 100.00 |   |    | $      | 82.92  |    |   | $      | 44.44   |   |   | $       | 32.83  |   |    | $      | 28.34 |   |   | $ | 25.84 |   |

----

| Item 6. | Selected Financial Data. |
|---------|--------------------------|

|                                                                   |   | Year Ended June 30,                   |    |
|------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                   |   | 2011                                  |    |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                   |   | (In thousands, except per share data) |    |
| Statement of Operations Data:                                          |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                |   | $                                     | -       |   |   | $ | 140 |   |   | $ | 275 |   |   | $ | 457 |   |   | $ | 300 |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                                             |   |                                  | 2,610   |   |   |   | 2,349 |   |   |   | 2,206 |   |   |   | 2,291 |   |   |   | 2,413 |   |
| Research and development                                               |   |                                  | 3,720   |   |   |   | 2,637 |   |   |   | 2,354 |   |   |   | 1,765 |   |   |   | 1,208 |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                               |   |                                  | 6,330   |   |   |   | 4,986 |   |   |   | 4,560 |   |   |   | 4,056 |   |   |   | 3,621 |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                   |   |                                  | (6,330  | ) |   |   | (4,846 | ) |   |   | (4,285 | ) |   |   | (3,599 | ) |   |   | (3,321 | ) |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grant income                                                           |   |                                  | 244     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Fair value – warrant liability                                   |   |                                  | 609     |   |   |   | 2,517 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other noncash expense                                                  |   |                                  | (116    | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss on extinguishment of debt                                         |   |                                  | -       |   |   |   | (362 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Write off of patents abandoned                                         |   |                                  | (1,588  | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of debt discount and financing costs                      |   |                                  | -       |   |   |   | (10,081 | ) |   |   | (478 | ) |   |   | (668 | ) |   |   | - |   |
| Interest expense – convertible notes                             |   |                                  | -       |   |   |   | (587 | ) |   |   | (1,007 | ) |   |   | (434 | ) |   |   | - |   |
| Interest (expense) income, net                                         |   |                                  | (88     | ) |   |   | (24 | ) |   |   | 43 |   |   |   | 100 |   |   |   | 69 |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                               |   |                                  | (7,269  | ) |   |   | (13,383 | ) |   |   | (5,727 | ) |   |   | (4,601 | ) |   |   | (3,252 | ) |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred dividends including beneficial conversion feature of $5,330  |   |                                  | (2,638  | ) |   |   | (6,240 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss available to common shares                                    |   | $                                     | (9,907  | ) |   | $ | (19,623 | ) |   | $ | (5,727 | ) |   | $ | (4,601 | ) |   | $ | (3,252 | ) |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted net loss per common share                            |   | $                                     | (0.14   | ) |   | $ | (0.67 | ) |   | $ | (0.30 | ) |   | $ | (0.26 | ) |   | $ | (0.19 | ) |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted weighted average number of common shares outstanding |   |                                  | 69,332  |   |   |   | 29,113 |   |   |   | 18,888 |   |   |   | 17,660 |   |   |   | 16,917 |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance Sheet Data:                                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash, cash equivalents and investments                                 |   | $                                     | 3,610   |   |   | $ | 8,026 |   |   | $ | 1,431 |   |   | $ | 6,176 |   |   | $ | 658 |   |
| Working capital                                                        |   |                                  | 1,788   |   |   |   | 6,002 |   |   |   | 1,259 |   |   |   | 5,673 |   |   |   | 259 |   |
| Total assets                                                           |   |                                  | 8,597   |   |   |   | 13,912 |   |   |   | 7,122 |   |   |   | 10,643 |   |   |   | 3,322 |   |
| Accumulated deficit                                                    |   |                                  | (60,748 | ) |   |   | (50,841 | ) |   |   | (35,950 | ) |   |   | (30,223 | ) |   |   | (25,622 | ) |
| Total stockholders’ equity                                       |   |                                  | 4,517   |   |   |   | 7,981 |   |   |   | 5,668 |   |   |   | 9,836 |   |   |   | 2,690 |   |

----

| Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------|

----

----

|   | · | Nonrefundable upfront license fees that are received in exchange for the transfer of our technology to licensees, for which no further obligations to the licensee exist with respect to the basic technology transferred, are recognized as revenue on the earlier of when payments are received or collections are assured. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Nonrefundable upfront license fees that are received in connection with agreements that include time-based payments are, together with the time-based payments, deferred and amortized ratably over the estimated research period of the license. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Milestone payments, which are contingent upon the achievement of certain research goals, are recognized as revenue when the milestones, as defined in the particular agreement, are achieved. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the existence of any prior relationship between us and the third party provider; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | the past results of prior research and development services performed by the third party provider; and |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | the scope and timing of the research and development services set forth in the agreement with the third party provider. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                               |   | Payments Due by Period |    |
|--------------------------------------------------------------------|--------|------------------------|---------|
| Contractual Obligations                                            |   | Total                  |    |   | Less than1 year |   |   | 1 - 3 years |   |   | 3 - 5 years |   |   | More than5 years |   |
|                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Research and Development Agreements (1)                            |   | $                      | 580,206 |   |   | $ | 483,484 |   |   | $ | 96,722 |   |   | $ | — |   |   | $ | — |   |
|                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Facility, Rent andOperating Leases (2)                             |   | $                      | 131,171 |   |   | $ | 68,437 |   |   | $ | 62,734 |   |   | $ | — |   |   | $ | — |   |
|                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Employment, Consultingand Scientific Advisory Board Agreements (3) |   | $                      | 166,500 |   |   | $ | 92,333 |   |   | $ | 74,167 |   |   | $ | — |   |   | $ | — |   |
|                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total ContractualCash Obligations                                  |   | $                      | 877,877 |   |   | $ | 644,254 |   |   | $ | 233,623 |   |   | $ | — |   |   | $ | — |   |

| (1) | Certain of our research and development agreements disclosed herein provide that payment is to be made in Canadian dollars and, therefore, the contractual obligations are subject to fluctuations in the exchange rate. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The lease for our office space in Bridgewater, New Jersey is subject to certain escalations for our proportionate share of increases in the building’s operating costs. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Certain of our consulting agreements provide for automatic renewal, which is not reflected in the table, unless terminated earlier by the parties to the respective agreements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | utilizing our current cash balance and investments, |
|--------|--------|-----------------------------------------------------|

|   | · | achieving some of the milestones set forth in our current licensing agreements, |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | through the execution of additional licensing agreements for our technology, and |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | through the placement of equity or debt instruments. |
|--------|--------|------------------------------------------------------|

----

|                       |   | Year Ended June 30, |      |
|----------------------------|--------|---------------------|-----------|
|                       |   | 2011                |      |   | 2010 |   |   | Change |   |   | % |   |
|                       |   |                |      |   |   |   |   |   |   |   |   |   |
| General and administrative |   | $                   | 2,610,222 |   |   | $ | 2,349,116 |   |   | $ | 261,106 |   |   |   | 11 | % |
|                       |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research and development   |   |                | 3,720,394 |   |   |   | 2,637,407 |   |   |   | 1,082,987 |   |   |   | 41 | % |
|                       |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses   |   | $                   | 6,330,616 |   |   | $ | 4,986,523 |   |   | $ | 1,344,093 |   |   |   | 27 | % |

----

|                                      |   | Year ended June 30, |      |
|-------------------------------------------|--------|---------------------|-----------|
|                                      |   | 2011                |      |   | 2010 |   |
|                                      |   |                |      |   |   |   |
| Stock-based compensation                  |   | $                   | 709,207   |   |   | $ | 433,414 |   |
| Payroll and benefits                      |   |                | 568,597   |   |   |   | 655,958 |   |
| Investor relations                        |   |                | 260,455   |   |   |   | 250,893 |   |
| Professional fees                         |   |                | 425,640   |   |   |   | 509,838 |   |
| Depreciation and amortization             |   |                | 143,274   |   |   |   | 126,567 |   |
| Other general and administrative expenses |   |                | 503,049   |   |   |   | 372,446 |   |
|                                      |   |                |      |   |   |   |   |   |
| Total general and administrative expenses |   | $                   | 2,610,222 |   |   | $ | 2,349,116 |   |

|   | · | Stock-based compensation in Fiscal 2011 and 2010 consisted of the amortized portion of the Black-Scholes value of options, restricted stock units and warrants granted to directors, employees and consultants.  During Fiscal 2011 and 2010, the following options and warrants were granted to such individuals: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     |   | Fiscal 2011 |      |   | Fiscal 2010 |   |
|----------|--------|-------------|-----------|--------|-------------|--------|
|     |   |        |      |   |        |   |   |   |
| Options  |   |        | 4,579,142 |   |        |   | 2,951,760 |   |
| Warrants |   |        | 305,000   |   |        |   | 154,184 |   |

|   | · | Payroll and benefits in Fiscal 2011 was lower than in Fiscal 2010 primarily due to the resignation of the VP-Corporate Development during Fiscal 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Investor relations expense in Fiscal 2011 was higher than in Fiscal 2010 primarily as a result of an increase in investor relations consulting costs. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Professional fees in Fiscal 2011 were lower than in Fiscal 2010 primarily as a result of a decrease in legal fees.  Legal fees decreased primarily due to discounts negotiated with our law firm and not incurring fees related to the resignation of our former President and CEO and the VP-Corporate Development, the redemption of our convertible notes, the Stanford bankruptcy and other regulatory issues which were incurred in Fiscal 2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization in Fiscal 2011 was higher than in Fiscal 2010 primarily as a result of an increase in amortization of patent costs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | Year Ended June 30, |      |
|--------------------------------|--------|---------------------|-----------|
|                           |   | 2011                |      |   | 2010 |   |   | Change |   |   | % |   |
| Stock-based compensation       |   | $                   | 41,159    |   |   | $ | 7,025 |   |   | $ | 34,134 |   |   |   | 486 | % |
|                           |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other research and development |   |                | 3,679,235 |   |   |   | 2,630,382 |   |   |   | 1,048,853 |   |   |   | 40 | % |
|                           |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total research and development |   | $                   | 3,720,394 |   |   | $ | 2,637,407 |   |   | $ | 1,082,987 |   |   |   | 41 | % |

|   | · | Stock-based compensation in Fiscal 2011 was higher than in Fiscal 2010 primarily because the number of options granted during Fiscal 2011 was higher than in Fiscal 2010. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other research and development costs in Fiscal 2011 was higher than in Fiscal 2010 primarily as a result of the expansion of our human therapeutic programs, specifically performing the pivotal toxicology study and submitting the IND for our multiple myeloma project. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | Year ended June 30, |      |
|-----------------------------------------|--------|---------------------|-----------|
|                                    |   | 2011                |      |   | % |   |   | 2010 |   |   | % |   |
|                                    |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Agricultural research programs          |   | $                   | 467,141   |   |   |   | 13 | % |   | $ | 553,620 |   |   |   | 21 | % |
| Human therapeutic research programs     |   |                | 3,253,253 |   |   |   | 87 | % |   |   | 2,083,787 |   |   |   | 79 | % |
|                                    |   |                |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total research and development expenses |   | $                   | 3,720,394 |   |   |   | 100 | % |   | $ | 2,637,407 |   |   |   | 100 | % |

|   | · | Agricultural research expenses in Fiscal 2011 were lower than in Fiscal 2010 primarily as a result of a decrease in the allocation of payroll from agriculture to human therapeutics. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Human therapeutic research expenses in Fiscal 2011 were higher than in Fiscal 2010 primarily as a result of the progress of the ongoing multiple myeloma project. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                  |   | Year Ended June 30, |     |
|-----------------------|--------|------------------------------------|----------|
|                  |   | 2011                               |     |   | 2010 |   |   | Change |   |   | % |   |
|                  |   |                               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense      |   | $                                  | (110,649 | ) |   | $ | (34,772 | ) |   | $ | (75,877 | ) |   |   | (218 | )% |
| Interest income       |   |                               | 22,527   |   |   |   | 10,637 |   |   |   | 11,890 |   |   |   | 112 | % |
|                  |   |                               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net |   | $                                  | (88,122  | ) |   | $ | (24,135 | ) |   | $ | (63,987 | ) |   |   | (265 | )% |

|   | · | Interest expense in Fiscal 2011 was higher than in Fiscal 2010 due to the interest incurred on the $3,000,000 line of credit, of which approximately $2,200,000 was utilized during the entirety of Fiscal 2011, but only for the last five months of Fiscal 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Interest income in Fiscal 2011 was higher than in Fiscal 2010 due to a higher average cash and investment balance during the year. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

----

|                       |   | Year Ended June 30, |      |
|----------------------------|--------|------------------------------------|-----------|
|                       |   | 2010                               |      |   | 2009 |   |   | Change |   |   | % |   |
|                       |   |                               |      |   |   |   |   |   |   |   |   |   |
| General and administrative |   | $                                  | 2,349,116 |   |   | $ | 2,205,739 |   |   | $ | 143,377 |   |   |   | 7 | % |
|                       |   |                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research and development   |   |                               | 2,637,407 |   |   |   | 2,353,962 |   |   |   | 283,445 |   |   |   | 12 | % |
|                       |   |                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses   |   | $                                  | 4,986,523 |   |   | $ | 4,559,701 |   |   | $ | 426,822 |   |   |   | 9 | % |

|                                      |   | Year ended June 30, |      |
|-------------------------------------------|--------|------------------------------------|-----------|
|                                      |   | 2010                               |      |   | 2009 |   |
|                                      |   |                               |      |   |   |   |
| Stock-based compensation                  |   | $                                  | 433,414   |   |   | $ | 445,255 |   |
| Payroll and benefits                      |   |                               | 655,958   |   |   |   | 689,834 |   |
| Investor relations                        |   |                               | 250,893   |   |   |   | 244,537 |   |
| Professional fees                         |   |                               | 509,838   |   |   |   | 415,767 |   |
| Depreciation and amortization             |   |                               | 126,567   |   |   |   | 111,753 |   |
| Other general and administrative expenses |   |                               | 372,446   |   |   |   | 98,593 |   |
|                                      |   |                               |      |   |   |   |   |   |
| Total general and administrative expenses |   | $                                  | 2,349,116 |   |   | $ | 2,205,739 |   |

|   | · | Stock-based compensation in Fiscal 2010 and 2009 consisted of the amortized portion of the Black-Scholes value of options, restricted stock units and warrants granted to directors, employees and consultants.  During Fiscal 2010 and 2009, the following options, restricted stock units and warrants were granted to such individuals: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | Fiscal 2010 |      |   | Fiscal 2009 |   |
|------------------------|--------|------------------|-----------|--------|------------------|--------|
|                   |   |             |      |   |             |   |   |   |
| Options                |   |             | 2,951,760 |   |             |   | 834,812 |   |
| Restricted Stock Units |   |             | -         |   |             |   | 136,000 |   |
| Warrants               |   |             | -         |   |             |   | 500 |   |

----

|   | · | Payroll and benefits in Fiscal 2010 was lower than in Fiscal 2009 primarily due to the resignation of the former President and CEO and the VP-Corporate Development during Fiscal 2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Investor relations expense in Fiscal 2010 was higher than in Fiscal 2009 primarily as a result of an increase in investor relations consulting costs. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Professional fees in Fiscal 2010 were higher than in Fiscal 2009 primarily as a result of an increase in legal fees.  Legal fees increased primarily due to the resignation of our former President and CEO and the VP-Corporate Development, the redemption of our convertible notes, the Stanford bankruptcy and other regulatory issues. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization in Fiscal 2010 was higher than in Fiscal 2009 primarily as a result of an increase in amortization of patent costs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | Year Ended June 30, |      |
|--------------------------------|--------|------------------------------------|-----------|
|                           |   | 2010                               |      |   | 2009 |   |   | Change |   |   | % |   |
| Stock-based compensation       |   | $                                  | 7,025     |   |   | $ | 61,592 |   |   | $ | (54,567 | ) |   |   | (89 | )% |
|                           |   |                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other research and development |   |                               | 2,630,382 |   |   |   | 2,292,370 |   |   |   | 338,012 |   |   |   | 15 | % |
|                           |   |                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total research and development |   | $                                  | 2,637,407 |   |   | $ | 2,353,962 |   |   | $ | 283,445 |   |   |   | 12 | % |

|   | · | Stock-based compensation in Fiscal 2010 was lower than in Fiscal 2009 primarily because the number of options vested during Fiscal 2010 were lower than in Fiscal 2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other research and development costs in Fiscal 2010 was higher than in Fiscal 2009 primarily as a result of the expansion of our human therapeutic programs, specifically our multiple myeloma project and an increase in the cost of our research agreement with the University of Waterloo due to the weakening of the U.S. dollar against the Canadian dollar. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                    |   | Year ended June 30, |      |
|-----------------------------------------|--------|------------------------------------|-----------|
|                                    |   | 2010                               |      |   | % |   |   | 2009 |   |   | % |   |
| Agricultural research programs          |   | $                                  | 553,620   |   |   |   | 21 | % |   | $ | 617,783 |   |   |   | 26 | % |
| Human therapeutic research programs     |   |                               | 2,083,787 |   |   |   | 79 | % |   |   | 1,736,179 |   |   |   | 74 | % |
|                                    |   |                               |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total research and development expenses |   | $                                  | 2,637,407 |   |   |   | 100 | % |   | $ | 2,353,962 |   |   |   | 100 | % |

|   | · | Agricultural research expenses in Fiscal 2010 were lower than in Fiscal 2009 primarily as a result of a decrease in the allocation of payroll from agriculture to human therapeutics. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Human therapeutic research expenses in Fiscal 2010 were higher than in Fiscal 2009 primarily as a result of the progress of the ongoing multiple myeloma project. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | Year Ended June 30, |    |   |   |   |   |   |   |
|--------------------------------|--------|------------------------------------|---------|--------|--------|--------|--------|--------|--------|
|                           |   | 2010                               |    |   | 2009   |   |   | Change |   |   | % |   |
| Interest expense               |   | $                                  | (34,772 | )      |   |   | -      |   |   | $ | (34,772 | ) |   |   | - |   |
| Interest income                |   |                               | 10,637  |   |   | $      | 43,076 |   |   |   | (32,439 | ) |   |   | (75 | )% |
| Interest (expense) income, net |   |                               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   | $                                  | (24,135 | )      |   | $      | 43,076 |   |   | $ | (67,211 | ) |   |   | (156 | )% |

|   | · | Interest expense in Fiscal 2010 was higher than in Fiscal 2009 due to the interest incurred on the $3,000,000 line of credit, of which approximately $2,200,000 was utilized during the last five months of Fiscal 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Interest income in Fiscal 2010 was lower than in Fiscal 2009 due to a lower average cash and investments balance during the year and lower interest rates. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. |
|---------|---------------------------------------------------------------------------------------|

|   | · | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of our company; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of our company are being made only in accordance with authorization of management and directors of our company; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our company’s assets that could have a material effect on the financial statements. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Item 10. | Directors, Executive Officers and Corporate Governance. |
|----------|---------------------------------------------------------|

----

----

|   | SENESCO TECHNOLOGIES, INC. |
|--------|----------------------------|
|   |                       |   |
|   | By:                        | /s/ Leslie J. Browne |
|   |                       | Leslie J. Browne, Ph.D., President and |
|   |                       | Chief Executive Officer |
|   |                       | (principal executive officer) |

|   | By:    | /s/ Joel Brooks                             |
|--------|--------|---------------------------------------------|
|   |   | Joel Brooks, Chief Financial Officer,       |
|   |   | Secretary and Treasurer                     |
|   |   | (principal financial and accountingofficer) |

----

| Signature                   |   | Title                                      |   | Date               |
|-----------------------------|--------|--------------------------------------------|--------|--------------------|
|                        |   |                                       |   |               |
| /s/ Harlan W. Waksal, M.D.  |   | Chairman and Director                      |   | September 28, 2011 |
| Harlan W. Waksal, M.D.      |   |                                       |   |               |
|                        |   |                                       |   |               |
| /s/ Leslie J. Browne, Ph.D. |   | President, Chief Executive Officer         |   | September 28, 2011 |
| Leslie J. Browne, Ph.D.     |   | and Director (principal executive officer) |   |               |
|                        |   |                                       |   |               |
| /s/ Joel Brooks             |   | Chief Financial Officer, Secretary         |   | September 28, 2011 |
| Joel Brooks                 |   | and Treasurer (principal financial         |   |               |
|                        |   | and accounting officer)                    |   |               |
|                        |   |                                       |   |               |
| /s/ John E. Thompson        |   | Executive Vice President, Chief            |   | September 28, 2011 |
| John E. Thompson            |   | Scientific Officer and Director            |   |               |
|                        |   |                                       |   |               |
| /s/ John Braca              |   | Director                                   |   | September 28, 2011 |
| John Braca                  |   |                                       |   |               |
|                        |   |                                       |   |               |
| /s/ Christopher Forbes      |   | Director                                   |   | September 28, 2011 |
| Christopher Forbes          |   |                                       |   |               |
|                        |   |                                       |   |               |
| /s/ Warren J. Isabelle      |   | Director                                   |   | September 28, 2011 |
| Warren J. Isabelle          |   |                                       |   |               |
|                        |   |                                       |   |               |
| /s/ Thomas C. Quick         |   | Director                                   |   | September 28, 2011 |
| Thomas C. Quick             |   |                                       |   |               |
|                        |   |                                       |   |               |
| /s/ David Rector            |   | Director                                   |   | September 28, 2011 |
| David Rector                |   |                                       |   |               |
|                        |   |                                       |   |               |
| /s/ Rudolf Stalder          |   | Director                                   |   | September 28, 2011 |
| Rudolf Stalder              |   |                                       |   |               |
|                        |   |                                       |   |               |
| /s/ Jack Van Hulst          |   | Director                                   |   | September 28, 2011 |
| Jack Van Hulst              |   |                                       |   |               |

----

| ExhibitNo. |   |  Description of Exhibit                                                                                                                                                                                                                                                                                                                            |
|------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 2.1        |   | Merger Agreement and Plan of Merger by and among Nava Leisure USA, Inc., an Idaho corporation, the Principal Stockholders (as defined therein), Nava Leisure Acquisition Corp., and Senesco, Inc., dated October 9, 1998.  (Incorporated by reference to Senesco Technologies, Inc. definitive proxy statement on Schedule 14A dated January 11, 1999.) |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 2.2        |   | Merger Agreement and Plan of Merger by and between Senesco Technologies, Inc., an Idaho corporation, and Senesco Technologies, Inc., a Delaware corporation, dated September 30, 1999.  (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended September 30, 1999.)                              |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.1        |   | Amended and Restated Certificate of Incorporation of Senesco Technologies, Inc. filed with the State of Delaware on January 22, 2007.  (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended December 31, 2006.)                                                                                  |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.2        |   | Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Senesco Technologies, Inc. filed with the State of Delaware on January 22, 2008. (Incorporated by reference to Exhibit 3.1 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended December 31, 2007.)                                              |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.3        |   | Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Senesco Technologies, Inc. filed with the State of Delaware on September 22, 2009. (Incorporated by reference to Exhibit 3.3 of Senesco Technologies, Inc. annual report on Form 10-K/A for the period ended June 30, 2009.)                                                 |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.4        |   | Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Senesco Technologies, Inc. filed with the State of Delaware on May 25, 2010. (Incorporated by reference to Exhibit 3.1 to Senesco Technologies, Inc. current report on Form 8-K filed on May 28, 2010.)                                                                      |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.5        |   | Amended and Restated By-laws of Senesco Technologies, Inc. as adopted on October 2, 2000. (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended December 31, 2000.)                                                                                                                                       |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.6        |   | Certificate of Designations to the Company’s Certificate of Incorporation (Series A)(Incorporated by reference to Exhibit 3.1 to Senesco Technologies, Inc. current report on Form 8-K filed on March 29, 2010)                                                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 3.7        |   | Certificate of Designations to the Company’s Certificate of Incorporation (Series B)(Incorporated by reference to Exhibit 3.2 to Senesco Technologies, Inc. current report on Form 8-K filed on March 29, 2010)                                                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                                                                                                              |
| 4.1        |   | Form of Warrant issued to Stanford Venture Capital Holdings, Inc. and certain officers of Stanford Venture Capital Holdings, Inc. (with attached schedule of parties and terms thereto). (Incorporated by reference to Exhibit 4.1 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended December 31, 2001.)                         |

----

| ExhibitNo. |         |  Description of Exhibit                                                                                                                                                                                                                                                                                                                                         |
|------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.2   |         | Form of Warrant issued to H.C. Wainwright & Co., Inc., or its designees, dated as of October 10, 2006 (Incorporated by reference to Exhibit 10.42 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2006.)                                                                                                                            |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.3   |         | Form or Warrant issued to certain accredited investors dated October 10, 2006 (with attached schedule of parties and terms thereto).  (Incorporated by reference to Exhibit 10.40 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2006.)                                                                                      |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.4        |         | Form of Series A Warrant issued to YA Global Investments, L.P. (Incorporated by reference to Exhibit 4.15 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                        |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.5        |         | Form of Series A Warrant issued to Stanford Venture Capital Holdings, Inc. (Incorporated by reference to Exhibit 4.16 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                                                                            |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.6        |         | Form of Series B Warrant issued to YA Global Investments, L.P. (Incorporated by reference to Exhibit 4.19 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                        |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.7   |         | Form of Series B Warrant issued to Stanford Venture Capital Holdings, Inc. (Incorporated by reference to Exhibit 4.20 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                                                                            |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.8        |         | Form of Warrant issued to H.C. Wainwright & Co., Inc or its designees. (Incorporated by reference to Exhibit 4.21 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2008.)                                                                                                                                                            |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.9        |         | Form of Series A Warrant issued to Partlet Holdings Ltd. (Incorporated by reference to Exhibit 4.1 of Senesco Technologies, Inc. current report on Form 8-K, filed on July 10, 2009.)                                                                                                                                                                                          |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.10       |         | Form of Series B Warrant issued to Partlet Holdings Ltd. (Incorporated by reference to Exhibit 4.1 of Senesco Technologies, Inc. current report on Form 8-K, filed on July 10, 2009.)                                                                                                                                                                                          |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.11       |         | Form of Series A Warrant issued to each of Robert Forbes, Timothy Forbes, Harlan W. Waksal, M.D., Rudolf Stalder, Christopher Forbes, David Rector, John N. Braca, Jack Van Hulst, Warren Isabelle and the Thomas C. Quick Charitable Foundation. (Incorporated by reference to Exhibit 4.1 of Senesco Technologies, Inc. current report on Form 8-K, filed on July 30, 2009.) |
|       |         |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.12       |    | Form of Series B Warrant issued to each of Robert Forbes, Timothy Forbes, Harlan W. Waksal, M.D., Rudolf Stalder, Christopher Forbes, David Rector, John N. Braca, Jack Van Hulst, Warren Isabelle and the Thomas C. Quick Charitable Foundation. (Incorporated by reference to Exhibit 4.1 of Senesco Technologies, Inc. current report on Form 8-K, filed on July 30, 2009.) |

----

| ExhibitNo.  |         |  Description of Exhibit                                                                                                                                                                                                                                           |
|-------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |         |                                                                                                                                                                                                                                                                             |
|   4.13 |         | Form of Series A Warrant issued to Cato Holding Company. (Incorporated by reference to Exhibit 4.1 of Senesco Technologies, Inc. current report on Form 8-K, filed on July 30, 2009.)                                                                                            |
|        |         |                                                                                                                                                                                                                                                                             |
|   4.14 |         | Form of Series B Warrant issued to Cato Holding Company. (Incorporated by reference to Exhibit 4.1 of Senesco Technologies, Inc. current report on Form 8-K, filed on July 30, 2009.)                                                                                            |
|        |         |                                                                                                                                                                                                                                                                             |
|   4.15 |         | Form of Series A Common Stock Purchase Warrant issued to certain accredited investors (Incorporated by reference to Exhibit 4.1 of Senesco Technologies, Inc. current report on Form 8-K filed on March 29, 2010.)                                                               |
|        |         |                                                                                                                                                                                                                                                                             |
|   4.16 |         | Form of Series B Common Stock Purchase Warrant issued to certain affiliated investors (Incorporated by reference to Exhibit 4.2 of Senesco Technologies, Inc. current report on Form 8-K filed on March 29, 2010.)                                                               |
|        |         |                                                                                                                                                                                                                                                                             |
| 10.1        |         | Indemnification Agreement by and between Senesco Technologies, Inc. and Christopher Forbes, dated January 21, 1999.  (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended December 31, 1998.)                 |
|        |         |                                                                                                                                                                                                                                                                             |
| 10.2        |         | Indemnification Agreement by and between Senesco Technologies, Inc. and Thomas C. Quick, dated February 23, 1999.  (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended March 31, 1999.)                      |
|        |         |                                                                                                                                                                                                                                                                             |
| 10.3        |         | Indemnification Agreement by and between Senesco Technologies, Inc. and Ruedi Stalder, dated March 1, 1999.  (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended March 31, 1999.)                            |
|        |         |                                                                                                                                                                                                                                                                             |
| 10.4        |         | Indemnification Agreement by and between Senesco Technologies, Inc. and Bruce C. Galton, dated October 4, 2001. (Incorporated by reference to Exhibit 10.10 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the quarterly period ended December 31, 2001.)     |
|        |         |                                                                                                                                                                                                                                                                             |
| 10.5        |         | Indemnification Agreement by and between Senesco Technologies, Inc. and Jack Van Hulst, dated January 16, 2007. (Incorporated by reference to Exhibit 10.13 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007)                         |
|        |         |                                                                                                                                                                                                                                                                             |
| 10.6        |         | Indemnification Agreement by and between Senesco Technologies, Inc. and John Braca, dated October 8, 2003.  (Incorporated by reference to Exhibit 10.38 of Senesco Technologies, Inc. annual report on Form 10-KSB for the period ended June 30, 2004.)                |
|        |         |                                                                                                                                                                                                                                                                             |
| 10.7        |         | Indemnification Agreement by and between Senesco Technologies, Inc. and David Rector dated as of April, 2002.  (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended September 30, 2004.)      |
|        |         |                                                                                                                                                                                                                                                                             |
| 10.8        |    | Indemnification Agreement by and between Senesco Technologies, Inc. and Harlan W. Waksal, M.D. dated as of October 24, 2008.  (Incorporated by reference to Exhibit 10.8 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2009.) |

----

| ExhibitNo. |         |  Description of Exhibit                                                                                                                                                                                                                                                                                               |
|------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10. 9      |         | Indemnification Agreement by and between Senesco Technologies, Inc. and Warren Isabelle dated as of June 8, 2009.  (Incorporated by reference to Exhibit 10.9 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2009.)                                                                |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.10      |         | Indemnification Agreement by and between Senesco Technologies, Inc. and Leslie J. Browne, Ph.D. dated as of May 25, 2010.  (Incorporated by reference to Exhibit 10.2 of Senesco Technologies, Inc. current report on Form 8-K filed on May 25, 2010.)                                                                     |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.11      |         | Nondisclosure, Noncompetition and Invention Assignment Agreement by and between Leslie J. Browne, Ph.D. and Senesco Technologies, Inc. dated May 25, 2010. (Incorporated by reference to Exhibit 10.3 of Senesco Technologies, Inc. current report on Form 8-K filed on May 25, 2010.)                                               |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.12*     |         | Consulting Agreement by and between Senesco Technologies, Inc. and John E. Thompson, Ph.D., dated July 12, 1999.  (Incorporated by reference to Senesco Technologies, Inc. annual report on Form 10-KSB for the period ended June 30, 2000.)                                                                               |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.13*     |         | Amendment to Consulting Agreement of July 12, 1999, as modified on February 8, 2001, by and between Senesco, Inc. and John E. Thompson, Ph.D., dated December 13, 2002.  (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended December 31, 2002.) |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.14 *    |         | Amendment # 5 to Consulting Agreement of July 12, 1999, as modified, by and between Senesco, Inc. and John E. Thompson, Ph.D., dated June 15, 2007. (Incorporated by reference to Exhibit 10.49 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                        |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.15 *    |         | Amendment # 6 to Consulting Agreement of July 12, 1999, as modified, by and between Senesco, Inc. and John E. Thompson, Ph.D., dated June 25, 2009. (Incorporated by reference to Exhibit 10.17 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2009.)                                        |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.16 *    |         | Amendment # 7 to Consulting Agreement of July 12, 1999, as modified, by and between Senesco, Inc. and John E. Thompson, Ph.D., dated June 20, 2011.                                                                                                                                                                                  |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.17 +    |         | Development Agreement by and between Senesco Technologies, Inc. and ArborGen, LLC, dated June 28, 2002.  (Incorporated by reference to Exhibit 10.31 of Senesco Technologies, Inc. annual report on Form 10-KSB for the year ended June 30, 2002.)                                                                         |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.18 +    |         | Commercial License Agreement by and between Senesco Technologies, Inc. and ArborGen, LLC dated as of December 21, 2006.  (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended December 31, 2006.)                                                                   |
|       |         |                                                                                                                                                                                                                                                                                                                                 |
| 10.19 +    |    | Development and License Agreement by and between Senesco Technologies, Inc. and Calwest Seeds, dated September 14, 2002.  (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended September 30, 2002.)                                               |

----

| ExhibitNo.    |         |  Description of Exhibit                                                                                                                                                                                                                                                          |
|---------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.20 +       |         | Development and License Agreement by and between Senesco Technologies, Inc. and The Scotts Company, dated March 8, 2004.  (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended March 31, 2004.)         |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.21 +       |         | Development and License Agreement with Broin and Associates, Inc. (currently known as Poet) dated as of October 14, 2004.  (Incorporated by reference to Exhibit 10.2 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended September 30, 2004.)         |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.22 +       |         | License Agreement by and between Senesco Technologies, Inc. and Bayer CropScience GmbH, dated as of November 8, 2006.  (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-Q for the quarterly period ended December 31, 2006.)                      |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.23 +       |         | License Agreement with Bayer CropScience AG dated as of July 23, 2007. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended September 30, 2007.)                                                                         |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.24 +       |         | Patent License Agreement with Monsanto Company dated as of August 6, 2007. (Incorporated by reference to Exhibit 10.2 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended September 30, 2007.)                                                                     |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.25 +       |         | License Agreement with Bayer CropScience AG dated as of September 17, 2007. (Incorporated by reference to Exhibit 10.3 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended September 30, 2007.)                                                                    |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.26         |         | Research Agreement by and among Senesco Technologies, Inc., Dr. John E. Thompson and the University of Waterloo, dated September 1, 1998, as amended. (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended December 31, 1998.)         |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.27         |         | Amendment to Research Agreement by and among the University of Waterloo, Senesco, Inc. and Dr. John E. Thompson, Ph.D., dated September 1, 2010. (Incorporated by reference to Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2010.)                       |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.28         |         | Amendment to Research Agreement by and among the University of Waterloo, Senesco, Inc. and Dr. John E. Thompson, Ph.D., dated December 1, 2010. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended December 31, 2010.) |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.29 † |         | Amendment to Research Agreement by and among the University of Waterloo, Senesco, Inc. and Dr. John E. Thompson, Ph.D., dated September 1, 2011.                                                                                                                                                |
|          |         |                                                                                                                                                                                                                                                                                            |
| 10.30 +       |    | Master Product Sale Agreement with VGXI, Inc. dated as of June 27, 2008. (Incorporated by reference to Exhibit 10.29 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2008.)                                                                              |

----

| ExhibitNo.    |         |  Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                          |
|---------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.31         |         | Master Product Sale Agreement with Polyplus-transfection dated as of June 30, 2008. (Incorporated by reference to Exhibit 10.30 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2008.)                                                                                                                                                                                         |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.32         |         | Proposal for Manufacture and Supply by and between Avecia Biotechnology, Inc. and Senesco Technologies, Inc. dated as of September 4, 2008. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended September 30, 2008.)                                                                                                                          |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.33         |         | Proposal for Biodistribution and Repeat Dose Toxicity Studies in Mice by and between BioReliance and Senesco Technologies, Inc. dated as of September 5, 2008. (Incorporated by reference to Exhibit 10.2 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended September 30, 2008.)                                                                                                       |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.34         |         | Services Agreement by and between KBI BioPharma, Inc. and Senesco Technologies, Inc. dated as of September 15, 2008. (Incorporated by reference to Exhibit 10.3 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended September 30, 2008.)                                                                                                                                                 |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.35 † |         | Master Services Agreement by and between Criterium, Inc. and Senesco Technologies, Inc. dated June 20, 2011.                                                                                                                                                                                                                                                                                                          |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.36 † |         | Clinical Trial Research Agreement by and between Mayo Clinic and Senesco Technologies, Inc. dated August 15, 2011.                                                                                                                                                                                                                                                                                                    |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.37         |         | Master Services Agreement by and among Cato Research Ltd. and Senesco Technologies, Inc., dated October 12, 2007. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended March 31, 2011.)                                                                                                                                                        |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.38         |         | Agreement for Service on Senesco Technologies, Inc. Scientific Advisory Board by and between Senesco Technologies, Inc. and Dr. Charles A. Dinarello, dated February 12, 2002.  (Incorporated by reference to Exhibit 10.6 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended March 31, 2002.)                                                                              |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.39         |         | Agreement for Service on Senesco Technologies, Inc. Scientific Advisory Board by and between Senesco Technologies, Inc. and James W. Mier, M.D., dated April 2, 2007. (Incorporated by reference to Exhibit 10.43 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                       |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.40         |         | Registration Rights Agreement by and among Senesco Technologies, Inc., Stanford Group Company, Stanford Venture Capital Holdings, Inc., Stanford International Bank, Ltd., Ronald Stein, Daniel Bogar, Osvaldo Pi and William Fusselmann dated October 11, 2006.  (Incorporated by reference to Exhibit 10.36 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2006.) |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.41    |    | Form of Securities Purchase Agreement by and between Senesco Technologies, Inc. and certain accredited investors dated October 10, 2006 (with attached schedule of parties and terms thereto).  (Incorporated by reference to Exhibit 10.38 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2006.)                                                                   |

----

| ExhibitNo.  |         |  Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.42  |         | Form of Registration Rights Agreement by and between Senesco Technologies, Inc and certain accredited investors dated October 10, 2006 (with attached schedule of parties and terms thereto).  (Incorporated by reference to Exhibit 10.39 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2006.)                                                                                                  |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.43  |         | Securities Purchase Agreement by and between Senesco Technologies, Inc. and YA Global Investments, L.P. (Incorporated by reference to Exhibit 10.44 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                                                   |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.44  |         | Registration Rights Agreement by and between Senesco Technologies, Inc. and YA Global Investments, L.P. (Incorporated by reference to Exhibit 10.45 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                                                   |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.45  |         | Securities Purchase Agreement by and between Senesco Technologies, Inc. and Stanford Venture Capital Holdings, Inc. (Incorporated by reference to Exhibit 10.46 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                                       |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.46  |         | Registration Rights Agreement by and between Senesco Technologies, Inc. and Stanford Venture Capital Holdings, Inc. (Incorporated by reference to Exhibit 10.47 of Senesco Technologies, Inc. annual report on Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                                       |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.47       |         | Securities Purchase Agreement by and between Senesco Technologies, Inc. and Partlet Holdings Ltd. Dated as of July 9, 2009. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. current report on Form 8-K, filed on July 10, 2009.)                                                                                                                                                                                           |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.48       |         | Securities Purchase Agreement by and between Senesco Technologies, Inc. and each of Robert Forbes, Timothy Forbes, Harlan W. Waksal, M.D., Rudolf Stalder, Christopher Forbes, David Rector, John N. Braca, Jack Van Hulst, Warren Isabelle and the Thomas C. Quick Charitable Foundation dated as of July 29, 2009. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. current report on Form 8-K , filed on July 30, 2009.) |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.49       |         | Securities Purchase Agreement by and between Senesco Technologies, Inc. and Cato Holding Company dated as of July 29, 2009. (Incorporated by reference to Exhibit 10.2 of Senesco Technologies, Inc. current report on Form 8-K , filed on July 30, 2009.)                                                                                                                                                                                          |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.50       |         | Securities Purchase Agreement by and between Senesco Technologies, Inc. and certain investors (Non-Affiliates). (Incorporated by reference to Exhibit 10.2 of Senesco Technologies, Inc. current report on Form 8-K filed on March 29, 2010.)                                                                                                                                                                                                       |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.51       |         | Securities Purchase Agreement by and between Senesco Technologies, Inc. and certain investors (Non-Affiliates). (Incorporated by reference to Exhibit 10.3 of Senesco Technologies, Inc. current report on Form 8-K filed on March 29, 2010.)                                                                                                                                                                                                       |
|        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.52       |    | Securities Purchase Agreement by and between Senesco Technologies, Inc. and certain investors (Affiliates). (Incorporated by reference to Exhibit 10.4 of Senesco Technologies, Inc. current report on Form 8-K filed on March 29, 2010.)                                                                                                                                                                                                           |

----

| ExhibitNo. |         |  Description of Exhibit                                                                                                                                                                                                                                                                         |
|------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.53      |         | Registration Rights Agreement dated March 26, 2010 by and between Senesco Technologies, Inc. and certain investors. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. current report on Form 8-K filed on March 29, 2010.)                                                              |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.54      |         | Office lease by and between Senesco Technologies, Inc. and Matrix/AEW NB, LLC, dated March 16, 2001.  (Incorporated by reference to Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended March 31, 2001.)                                                                 |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.55      |         | First amendment of office lease by and between Senesco Technologies, Inc. and Matrix/AEW NB, LLC, dated May 13, 2005 (Incorporated by reference to Exhibit 10.8 of Senesco Technologies, Inc annual report on Form 10-KSB for the period ended June 30, 2005.)                                                 |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.56      |         | Sublease Agreement, dated as of May 16, 2011 and effective as of May 19, 2011, by and between Norris, McLaughlin & Marcus, P.A., as Sublandlord, and Senesco Technologies, Inc., as Subtenant. (Incorporated by reference to Senesco Technologies, Inc. current report on Form 8-K filed on May 25, 2011.) |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.57      |         | Credit Agreement dated as of February 17, 2010 by and between Senesco Technologies, Inc. and JMP Securities. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended March 31, 2010.)                                                      |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.58      |         | Promissory Note by and among J.P. Morgan Clearing Corp. and Senesco Technologies, Inc., dated April 8, 2011. (Incorporated by reference to Exhibit 10.2 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended March 31, 2011.)                                                      |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.59      |         | Letter Agreement dated as of March 3, 2010 by and between the Company and YA Global Investments L.P. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. current report on Form 8-K filed on March 4, 2010.)                                                                              |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.60      |         | Letter Agreement dated as of March 4, 2010 sent to the Company by certain of its insiders relating to the conversion of convertible debentures. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. current report on Form 8-K filed on March 5, 2010.)                                   |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.61      |         | At Market Issuance Sales Agreement by and between Senesco Technologies Inc. and McNicoll, Lewis & Vlak LLC dated December 22, 2010. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. current report on Form 8-K filed on December 22, 2010.)                                       |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.62 *    |         | 1998 Stock Incentive Plan, as amended on December 13, 2002. (Incorporated by reference to Exhibit 10.7 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period ended December 31, 2002.)                                                                                                  |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.63*     |         | Senesco Technologies, Inc. 2008 Incentive Compensation Plan. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended December 31, 2008.)                                                                                                   |
|       |         |                                                                                                                                                                                                                                                                                                           |
| 10.64*     |    | Amendment to Senesco Technologies, Inc. 2008 Incentive Compensation Plan. (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc. current report on Form 8-K filed on May 28, 2010.)                                                                                                          |

----

| ExhibitNo.   |         |  Description of Exhibit                                                                                                                                                                                                                            |
|--------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |         |                                                                                                                                                                                                                                                              |
| 10.65*       |         | Form of Stock Option Agreement under the Senesco Technologies, Inc. 2008 Stock Incentive Plan. (Incorporated by reference to Exhibit 10.5 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended September 30, 2009.)                   |
|         |         |                                                                                                                                                                                                                                                              |
| 10.66*       |         | Form of Restricted Stock Unit Issuance Agreement under the Senesco Technologies, Inc. 2008 Stock Incentive Plan. (Incorporated by reference to exhibit 10.6 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the period ended September 30, 2009.) |
|         |         |                                                                                                                                                                                                                                                              |
| 21           |         | Subsidiaries of the Registrant. (Incorporated by reference to Senesco Technologies, Inc. annual report on Form 10-KSB for the period ended June 30, 1999.)                                                                                                        |
|         |         |                                                                                                                                                                                                                                                              |
| 23.1 † |         | Consent of McGladrey & Pullen, LLP.                                                                                                                                                                                                                           |
|         |         |                                                                                                                                                                                                                                                              |
| 31.1 † |         | Certification of the principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                       |
|         |         |                                                                                                                                                                                                                                                              |
| 31.2 † |         | Certification of the principal financial and accounting officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                        |
|         |         |                                                                                                                                                                                                                                                              |
| 32.1 † |         | Certification of the principal executive officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                       |
|         |         |                                                                                                                                                                                                                                                              |
| 32.2 † |    | Certification of the principal financial and accounting officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                        |

| * | A management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 13(a) of Form 10-K. |
|---|-----------------------------------------------------------------------------------------------------------------------------------|

| † | Filed herewith. |
|---------|-----------------|

| +  | The SEC granted Confidential Treatment for portions of this Exhibit. |
|---------|----------------------------------------------------------------------|

----

----

| Reports of Independent Registered Public Accounting Firm | F-2         |
|----------------------------------------------------------|-------------|
|                                                     |        |
| Consolidated Financial Statements:                       |        |
|                                                     |        |
| Balance Sheets                                           | F-3         |
| Statements of Operations                                 | F-4         |
| Statements of Stockholders' Equity                       | F-5 - F-10  |
| Statements of Cash Flows                                 | F-11        |
| Notes to Consolidated Financial Statements               | F-12 - F-32 |

----

----

|                                                                                                                                                                                      |   | June 30, |        |   | June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|---------------|--------|
|                                                                                                                                                                                      |   | 2011          |        |   | 2010          |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |
| ASSETS                                                                                                                                                                                    |   |          |        |   |          |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |
| CURRENT ASSETS:                                                                                                                                                                           |   |          |        |   |          |   |
| Cash and cash equivalents                                                                                                                                                                 |   | $             | 3,609,954   |   |          | $      | 8,026,296 |   |
| Prepaid research supplies and expenses                                                                                                                                                    |   |          | 1,446,064   |   |          |   | 1,304,795 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| Total Current Assets                                                                                                                                                                      |   |          | 5,056,018   |   |          |   | 9,331,091 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| Equipment, furniture and fixtures, net                                                                                                                                                    |   |          | 3,782       |   |          |   | 4,554 |   |
| Intangibles, net                                                                                                                                                                          |   |          | 3,524,731   |   |          |   | 4,568,895 |   |
| Deferred income tax assets, net                                                                                                                                                           |   |          | -           |   |          |   | - |   |
| Security deposit                                                                                                                                                                          |   |          | 12,358      |   |          |   | 7,187 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| TOTAL ASSETS                                                                                                                                                                              |   | $             | 8,596,889   |   |          | $      | 13,911,727 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                      |   |          |        |   |          |   |   |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| Accounts payable                                                                                                                                                                          |   | $             | 559,525     |   |          | $      | 557,420 |   |
| Accrued expenses                                                                                                                                                                          |   |          | 509,806     |   |          |   | 576,857 |   |
| Line of credit                                                                                                                                                                            |   |          | 2,199,108   |   |          |   | 2,194,844 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| Total Current Liabilities                                                                                                                                                                 |   |          | 3,268,439   |   |          |   | 3,329,121 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| Warrant liabilities ($0 and $490,438 to related parties, respectively)                                                                                                                    |   |          | 711,259     |   |          |   | 2,493,794 |   |
| Deferred rent                                                                                                                                                                             |   |          | -           |   |          |   | 8,060 |   |
| Grant payable                                                                                                                                                                             |   |          | 99,728      |   |          |   | 99,728 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| TOTAL LIABILITIES                                                                                                                                                                         |   |          | 4,079,426   |   |          |   | 5,930,703 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| STOCKHOLDERS' EQUITY:                                                                                                                                                                     |   |          |        |   |          |   |   |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| Preferred stock, $0.01 par value, authorized 5,000,000 shares                                                                                                                             |   |          |        |   |          |   |   |   |
| Series A 10,297 shares issued and 3,690 and 8,035 shares outstanding, respectively (liquidation preference of $3,782,250 and $8,235,875 at June 30, 2011 and June 30, 2010, respectively) |   |          | 37          |   |          |   | 80 |   |
| Series B 1,200 shares issued and outstanding (liquidation preference of $1,230,000 and $1,210,000 at June 30, 2011 and June 30, 2010, respectively)                                       |   |          | 12          |   |          |   | 12 |   |
| Common stock, $0.01 par value, authorized 250,000,000 shares, issued and outstanding 77,769,677 and 50,092,204, at June 30, 2011 and June 30, 2010, respectively                          |   |          | 777,697     |   |          |   | 500,922 |   |
| Capital in excess of par                                                                                                                                                                  |   |          | 64,488,152  |   |          |   | 58,321,169 |   |
| Deficit accumulated during the development stage                                                                                                                                          |   |          | (60,748,435 | )      |          |   | (50,841,159 | ) |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| Total Stockholders' Equity                                                                                                                                                                |   |          | 4,517,463   |   |          |   | 7,981,024 |   |
|                                                                                                                                                                                      |   |          |        |   |          |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                |   | $             | 8,596,889   |   |          | $      | 13,911,727 |   |

----

|                                                                   |   |                               |       |   |              |   |        |   |   |   | Cumulative |   |
|------------------------------------------------------------------------|--------|------------------------------------|------------|--------|-------------------|--------|-------------|--------|--------|--------|------------|--------|
|                                                                   |   | Year ended June 30, |       |   | Amounts from |   |
|                                                                   |   | 2011                               |       |   | 2010              |   |        | 2009   |   |   | Inception  |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |
| Revenue                                                                |   | $                                  | -          |   |              | $      | 140,000     |   |   | $      | 275,000    |   |   | $ | 1,590,000 |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Operating expenses:                                                    |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| General and administrative                                             |   |                               | 2,610,222  |   |              |   | 2,349,116   |   |   |   | 2,205,739  |   |   |   | 28,890,533 |   |
| Research and development                                               |   |                               | 3,720,394  |   |              |   | 2,637,407   |   |   |   | 2,353,962  |   |   |   | 18,669,358 |   |
| Total operating expenses                                               |   |                               | 6,330,616  |   |              |   | 4,986,523   |   |   |   | 4,559,701  |   |   |   | 47,559,891 |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Loss from operations                                                   |   |                               | (6,330,616 | )      |              |   | (4,846,523  | )      |   |   | (4,284,701 | )      |   |   | (45,969,891 | ) |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Other non-operating income (expense):                                  |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Grant income                                                           |   |                               | 244,479    |   |              |   | -           |   |   |   | -          |   |   |   | 244,479 |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Fair value – warrant liability                                   |   |                               | 609,239    |   |              |   | 2,516,661   |   |   |   | -          |   |   |   | 7,857,667 |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Sale of state income tax loss – net                              |   |                               | -          |   |              |   | -           |   |   |   | -          |   |   |   | 586,442 |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Other noncash (expense) income, net                                    |   |                               | (115,869   | )      |              |   | -           |   |   |   | -          |   |   |   | 205,390 |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Loss on extinguishment of debt                                         |   |                               | -          |   |              |   | (361,877    | )      |   |   | -          |   |   |   | (361,877 | ) |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Write off of patents abandoned                                         |   |                               | (1,588,087 | )      |              |   | -           |   |   |   | -          |   |   |   | (1,588,087 | ) |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Amortization of debt discount and financing costs                      |   |                               | -          |   |              |   | (10,081,107 | )      |   |   | (478,000   | )      |   |   | (11,227,870 | ) |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Interest expense – convertible notes                             |   |                               | -          |   |              |   | (586,532    | )      |   |   | (1,007,244 | )      |   |   | (2,027,930 | ) |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Interest (expense) income - net                                        |   |                               | (88,122    | )      |              |   | (24,135     | )      |   |   | 43,076     |   |   |   | 411,056 |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Net loss                                                               |   |                               | (7,268,976 | )      |              |   | (13,383,513 | )      |   |   | (5,726,869 | )      |   |   | (51,870,621 | ) |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Preferred dividends                                                    |   |                               | (2,638,300 | )      |              |   | (6,239,514  | )      |   |   | -          |   |   |   | (8,877,814 | ) |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Loss applicable to common shares                                       |   | $                                  | (9,907,276 | )      |              | $      | (19,623,027 | )      |   | $      | (5,726,869 | )      |   | $ | (60,748,435 | ) |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Basic and diluted net loss per common share                            |   | $                                  | (0.14      | )      |              | $      | (0.67       | )      |   | $      | (0.30      | )      |   |   |   |   |
|                                                                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Basic and diluted weighted-average number of common shares outstanding |   |                               | 69,332,477 |   |              |   | 29,112,976  |   |   |   | 18,888,142 |   |   |   |   |   |

----

|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   | Deficit         |   |      |          |   |
|---------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|-----------------------------|--------|--------|-------------|--------|--------|------------------------|--------|--------|-----------------|--------|-----------|---------------|--------|
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   | Accumulated     |   |      |          |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   | During the |   |      | Stockholders' |   |
|                                                                                        |   | Preferred Stock |   |   | Common Stock |   |   | Capital in Excess |   |   | Development |   |   | Equity                 |   |
|                                                                                        |   | Shares               |   |   | Amount            |   |   | Shares                      |   |   | Amount      |   |   | of Par Value |   |   | Stage           |   |      | (Deficiency)  |   |
| Common stock outstanding                                                                    |   |                 | -      |   |              | $      | -      |                        |   |   | 2,000,462   |   |   | $                      | 20,005 |   |            | $      | (20,005   | )             |   | $ | - |   |   | $ | - |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Contribution of capital                                                                     |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -      |   |            |   | 85,179    |          |   |   | - |   |   |   | 85,179 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in reverse merger on January 22, 1999 at $0.01 per share           |   |                 | -      |   |              |   | -      |                        |   |   | 3,400,000   |   |   |                   | 34,000 |   |            |   | (34,000   | )             |   |   | - |   |   |   | - |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash on May 21, 1999 at $2.63437 per share                     |   |                 | -      |   |              |   | -      |                        |   |   | 759,194     |   |   |                   | 7,592  |   |            |   | 1,988,390 |          |   |   | - |   |   |   | 1,995,982 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Issuance of common stock for placement fees on May 21, 1999 at $0.01 per share              |   |                 | -      |   |              |   | -      |                        |   |   | 53,144      |   |   |                   | 531    |   |            |   | (531      | )             |   |   | - |   |   |   | - |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                    |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -      |   |            |   | -         |          |   |   | (1,168,995 | ) |   |   | (1,168,995 | ) |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 1999                                                                    |   |                 | -      |   |              |   | -      |                        |   |   | 6,212,800   |   |   |                   | 62,128 |   |            |   | 2,019,033 |          |   |   | (1,168,995 | ) |   |   | 912,166 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash on January 26, 2000 at $2.867647 per share                |   |                 | -      |   |              |   | -      |                        |   |   | 17,436      |   |   |                   | 174    |   |            |   | 49,826    |          |   |   | - |   |   |   | 50,000 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash on January 31, 2000 at $2.87875 per share                 |   |                 | -      |   |              |   | -      |                        |   |   | 34,737      |   |   |                   | 347    |   |            |   | 99,653    |          |   |   | - |   |   |   | 100,000 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash on February 4, 2000 at $2.924582 per share                |   |                 | -      |   |              |   | -      |                        |   |   | 85,191      |   |   |                   | 852    |   |            |   | 249,148   |          |   |   | - |   |   |   | 250,000 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash on March 15, 2000 at $2.527875 per share                  |   |                 | -      |   |              |   | -      |                        |   |   | 51,428      |   |   |                   | 514    |   |            |   | 129,486   |          |   |   | - |   |   |   | 130,000 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash on June 22, 2000 at $1.50 per share                       |   |                 | -      |   |              |   | -      |                        |   |   | 1,471,700   |   |   |                   | 14,718 |   |            |   | 2,192,833 |          |   |   | - |   |   |   | 2,207,551 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Commissions, legal and bank fees associated with issuances for the year ended June 30, 2000 |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -      |   |            |   | (260,595  | )             |   |   | - |   |   |   | (260,595 | ) |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2000        |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -      |   |            |   | 1,475,927 |          |   |   | - |   |   |   | 1,475,927 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                    |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -      |   |            |   | -         |          |   |   | (3,346,491 | ) |   |   | (3,346,491 | ) |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2000                                                                    |   |                 | -      |   |              |   | -      |                        |   |   | 7,873,292   |   |   |                   | 78,733 |   |            |   | 5,955,311 |          |   |   | (4,515,486 | ) |   |   | 1,518,558 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2001        |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -      |   |            |   | 308,619   |          |   |   | - |   |   |   | 308,619 |   |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                    |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -      |   |            |   | -         |          |   |   | (2,033,890 | ) |   |   | (2,033,890 | ) |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2001                                                                    |   |                 | -      |   |              |   | -      |                        |   |   | 7,873,292   |   |   |                   | 78,733 |   |            |   | 6,263,930 |          |   |   | (6,549,376 | ) |   |   | (206,713 | ) |
|                                                                                        |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |   |   |            |   |      |          |   | continued |   |   |   |   |   |

----

|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Deficit         |   |       |          |   |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|-----------------------------|--------|--------|-------------|--------|--------|------------------------|---------|--------|-----------------|--------|------------|---------------|--------|
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Accumulated     |   |       |          |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | During the |   |       | Stockholders' |   |
|                                                                                                              |   | Preferred Stock |   |   | Common Stock |   |   | Capital in Excess |   |   | Development |   |   | Equity                 |    |
|                                                                                                              |   | Shares               |   |   | Amount            |   |   | Shares                      |   |   | Amount      |   |   | of Par Value |    |   | Stage           |   |       | (Deficiency)  |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |
| Issuance of common stock and warrants for cash from November 30, 2001 through April 17, 2002 at $1.75 per unit    |   |                 | -      |   |              | $      | -      |                        |   |   | 3,701,430   |   |   | $                      | 37,014  |   |            | $      | 6,440,486  |          |   | $ | - |   |   | $ | 6,477,500 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock and warrants associated with bridge loan conversion on December 3, 2001                  |   |                 | -      |   |              |   | -      |                        |   |   | 305,323     |   |   |                   | 3,053   |   |            |   | 531,263    |          |   |   | - |   |   |   | 534,316 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Commissions, legal and bank fees associated with issuances during the year ended June 30, 2002                    |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (846,444   | )             |   |   | - |   |   |   | (846,444 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2002                              |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 1,848,726  |          |   |   | - |   |   |   | 1,848,726 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (3,021,709 | ) |   |   | (3,021,709 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2002                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | 11,880,045  |   |   |                   | 118,800 |   |            |   | 14,237,961 |          |   |   | (9,571,085 | ) |   |   | 4,785,676 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2003                              |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 848,842    |          |   |   | - |   |   |   | 848,842 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (2,778,004 | ) |   |   | (2,778,004 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2003                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | 11,880,045  |   |   |                   | 118,800 |   |            |   | 15,086,803 |          |   |   | (12,349,089 | ) |   |   | 2,856,514 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock and warrants for cash from January 15, 2004 through February 12, 2004 at $2.37 per unit  |   |                 | -      |   |              |   | -      |                        |   |   | 1,536,922   |   |   |                   | 15,369  |   |            |   | 3,627,131  |          |   |   | - |   |   |   | 3,642,500 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Allocation of proceeds to warrants                                                                                |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (2,099,090 | )             |   |   | - |   |   |   | (2,099,090 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Reclassification of warrants                                                                                      |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 1,913,463  |          |   |   | - |   |   |   | 1,913,463 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Commissions, legal and bank fees associated with issuances for the year ended June 30, 2004                       |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (378,624   | )             |   |   | - |   |   |   | (378,624 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2004                              |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 1,826,514  |          |   |   | - |   |   |   | 1,826,514 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Options and warrants exercised during the year ended June 30, 2004 at exercise prices ranging from $1.00 to $3.25 |   |                 | -      |   |              |   | -      |                        |   |   | 370,283     |   |   |                   | 3,704   |   |            |   | 692,945    |          |   |   | - |   |   |   | 696,649 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (3,726,951 | ) |   |   | (3,726,951 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2004                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | 13,787,250  |   |   |                   | 137,873 |   |            |   | 20,669,142 |          |   |   | (16,076,040 | ) |   |   | 4,730,975 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   | continued |   |   |   |   |   |

----

|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Deficit         |   |       |          |   |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|-----------------------------|--------|--------|-------------|--------|--------|------------------------|---------|--------|-----------------|--------|------------|---------------|--------|
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Accumulated     |   |       |          |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | During the |   |       | Stockholders' |   |
|                                                                                                              |   | Preferred Stock |   |   | Common Stock |   |   | Capital in Excess |   |   | Development |   |   | Equity                 |    |
|                                                                                                              |   | Shares               |   |   | Amount            |   |   | Shares                      |   |   | Amount      |   |   | of Par Value |    |   | Stage           |   |       | (Deficiency)  |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |
| Issuance of common stock and warrants for cash on May 9, 2005 at $2.11 per unit                                   |   |                 | -      |   |              | $      | -      |                        |   |   | 1,595,651   |   |   | $                      | 15,957  |   |            | $      | 3,350,872  |          |   | $ | - |   |   | $ | 3,366,829 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Allocation of proceeds to warrants                                                                                |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (1,715,347 | )             |   |   | - |   |   |   | (1,715,347 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Reclassification of warrants                                                                                      |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 1,579,715  |          |   |   | - |   |   |   | 1,579,715 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Commissions, legal and bank fees associated with the issuance on May 9, 2005                                      |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (428,863   | )             |   |   | - |   |   |   | (428,863 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Options and warrants exercised during the year ended June 30, 2005 at exercise prices ranging from $1.50 to $3.25 |   |                 | -      |   |              |   | -      |                        |   |   | 84,487      |   |   |                   | 844     |   |            |   | 60,281     |          |   |   | - |   |   |   | 61,125 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2005                              |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 974,235    |          |   |   | - |   |   |   | 974,235 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (2,978,918 | ) |   |   | (2,978,918 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2005                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | 15,467,388  |   |   |                   | 154,674 |   |            |   | 24,490,035 |          |   |   | (19,054,958 | ) |   |   | 5,589,751 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Warrants exercised during the year ended June 30, 2006 at an exercise price of $0.01                              |   |                 | -      |   |              |   | -      |                        |   |   | 10,000      |   |   |                   | 100     |   |            |   | -          |          |   |   | - |   |   |   | 100 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2006                              |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 677,000    |          |   |   | - |   |   |   | 677,000 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (3,314,885 | ) |   |   | (3,314,885 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2006                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | 15,477,388  |   |   |                   | 154,774 |   |            |   | 25,167,035 |          |   |   | (22,369,843 | ) |   |   | 2,951,966 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock and warrants for cash on October 10, 2006 at $1.135 per unit                             |   |                 | -      |   |              |   | -      |                        |   |   | 1,986,306   |   |   |                   | 19,863  |   |            |   | 2,229,628  |          |   |   | - |   |   |   | 2,249,491 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Commissions, legal and bank fees associated with the issuance on October 10, 2006                                 |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (230,483   | )             |   |   | - |   |   |   | (230,483 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Warrants exercised during the year ended June 30, 2007 at an exercise price of $0.01                              |   |                 | -      |   |              |   | -      |                        |   |   | 10,000      |   |   |                   | 100     |   |            |   | -          |          |   |   | - |   |   |   | 100 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2007                              |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 970,162    |          |   |   | - |   |   |   | 970,162 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (3,251,697 | ) |   |   | (3,251,697 | ) |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2007                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | 17,473,694  |   |   |                   | 174,737 |   |            |   | 28,136,342 |          |   |   | (25,621,540 | ) |   |   | 2,689,539 |   |
|                                                                                                              |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   | continued |   |   |   |   |   |

----

|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Deficit         |   |       |          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|-----------------------------|--------|--------|-------------|--------|--------|------------------------|---------|--------|-----------------|--------|------------|---------------|--------|
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Accumulated     |   |       |          |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | During the |   |       | Stockholders' |   |
|                                                                                                                                                                                  |   | Preferred Stock |   |   | Common Stock |   |   | Capital in Excess |   |   | Development |   |   | Equity                 |    |
|                                                                                                                                                                                  |   | Shares               |   |   | Amount            |   |   | Shares                      |   |   | Amount      |   |   | of Par Value |    |   | Stage           |   |       | (Deficiency)  |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |
| Fair market value of options and warrants vested during the year ended June 30, 2008                                                                                                  |   |                 | -      |   |              | $      | -      |                        |   |   | -           |   |   | $                      | -       |   |            | $      | 1,536,968  |          |   | $ | - |   |   | $ | 1,536,968 |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Allocation of proceeds, net of fees paid to holder, from the issuance of convertible notes and warrants on September 21, 2007, October 16, 2007, December 20, 2007, and June 30, 2008 |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 9,340,000  |          |   |   | - |   |   |   | 9,340,000 |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Convertible notes converted into common stock during the year ended June 30, 2008                                                                                                     |   |                 | -      |   |              |   | -      |                        |   |   | 555,556     |   |   |                   | 5,556   |   |            |   | 430,952    |          |   |   | - |   |   |   | 436,508 |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in lieu of cash payment for interest during the year ended June 30, 2008                                                                                     |   |                 | -      |   |              |   | -      |                        |   |   | 345,867     |   |   |                   | 3,458   |   |            |   | 430,696    |          |   |   | - |   |   |   | 434,154 |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                                                              |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (4,601,490 | ) |   |   | (4,601,490 | ) |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2008                                                                                                                                                              |   |                 | -      |   |              |   | -      |                        |   |   | 18,375,117  |   |   |                   | 183,751 |   |            |   | 39,874,958 |          |   |   | (30,223,030 | ) |   |   | 9,835,679 |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2009                                                                                                  |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 506,847    |          |   |   | - |   |   |   | 506,847 |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Warrants exercised during the year ended June 30, 2009 at an exercise price of $0.01                                                                                                  |   |                 | -      |   |              |   | -      |                        |   |   | 2,395       |   |   |                   | 24      |   |            |   | (24        | )             |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in lieu of cash payment for interest during the year ended June 30, 2009                                                                                     |   |                 | -      |   |              |   | -      |                        |   |   | 1,271,831   |   |   |                   | 12,718  |   |            |   | 994,526    |          |   |   | - |   |   |   | 1,007,244 |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Convertible notes converted into common stock during the year ended June 30, 2009                                                                                                     |   |                 | -      |   |              |   | -      |                        |   |   | 50,000      |   |   |                   | 500     |   |            |   | 44,433     |          |   |   | - |   |   |   | 44,933 |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in connection with Short-Term Incentive Plan during the year ended June 30, 2009                                                                             |   |                 | -      |   |              |   | -      |                        |   |   | 112,700     |   |   |                   | 1,127   |   |            |   | (1,127     | )             |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                                                                              |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (5,726,869 | ) |   |   | (5,726,869 | ) |
|                                                                                                                                                                                  |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2009                                                                                                                                                              |   |                 | -      |   |              |   | -      |                        |   |   | 19,812,043  |   |   |                   | 198,120 |   |            |   | 41,419,613 |          |   |   | (35,949,899 | ) |   |   | 5,667,834 |   |

----

|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Deficit         |   |       |          |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|-----------------------------|--------|--------|-------------|--------|--------|------------------------|---------|--------|-----------------|--------|------------|---------------|--------|
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Accumulated     |   |       |          |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | During the |   |       | Stockholders' |   |
|                                                                                                                      |   | Preferred Stock |   |   | Common Stock |   |   | Capital in Excess |   |   | Development |   |   | Equity                 |    |
|                                                                                                                      |   | Shares               |   |   | Amount            |   |   | Shares                      |   |   | Amount      |   |   | of Par Value |    |   | Stage           |   |       | (Deficiency)  |   |
| Cumulative effect of change in accounting principle- implementation of FASB ASC Topic 815-40                              |   |                 | -      |   |              | $      | -      |                        |   |   | -           |   |   | $                      | -       |   |            | $      | (7,931,875 | )             |   | $ | 4,731,767 |   |   | $ | (3,200,108 | ) |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock and warrants for cash on July 9, 2009 and September 30, 2009 at $0.90 per unit                   |   |                 | -      |   |              |   | -      |                        |   |   | 1,700,000   |   |   |                   | 17,000  |   |            |   | 1,513,000  |          |   |   | - |   |   |   | 1,530,000 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock and warrants for satisfaction of accounts payable on September 30, 2009                          |   |                 | -      |   |              |   | -      |                        |   |   | 194,444     |   |   |                   | 1,944   |   |            |   | 259,588    |          |   |   | - |   |   |   | 261,532 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Legal and regulatory fees associated with the issuances on July 9, 2009 and September 30, 2009                            |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (180,862   | )             |   |   | - |   |   |   | (180,862 | ) |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of preferred stock and warrants for cash on April 1, 2010 and June 2, 2010                                       |   |                 | 11,497 |   |              |   | 115    |                        |   |   | -           |   |   |                   | -       |   |            |   | 11,496,885 |          |   |   | - |   |   |   | 11,497,000 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Deemed dividend- Preferred Stock                                                                                          |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 5,330,039  |          |   |   | (5,330,039 | ) |   |   | - |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Legal and regulatory fees associated with the issuances of preferred stock and warrants on April 1, 2010 and June 2, 2010 |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (793,498   | )             |   |   | - |   |   |   | (793,498 | ) |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair value of warrants issued on April 1, 2010 and June 2, 2010                                                           |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (1,759,008 | )             |   |   | - |   |   |   | (1,759,008 | ) |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Preferred stock converted into common stock during the year ended June 30, 2010                                           |   |                 | (2,262 | )      |              |   | (23    | )                           |   |   | 7,068,750   |   |   |                   | 70,688  |   |            |   | (70,665    | )             |   |   | - |   |   |   | - |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Warrants exercised during the year ended June 30, 2010 at an exercise price of $0.01                                      |   |                 | -      |   |              |   | -      |                        |   |   | 1,005,000   |   |   |                   | 10,050  |   |            |   | -          |          |   |   | - |   |   |   | 10,050 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in lieu of cash payment for interest during the year ended June 30, 2010                         |   |                 | -      |   |              |   | -      |                        |   |   | 1,353,132   |   |   |                   | 13,531  |   |            |   | 539,142    |          |   |   | - |   |   |   | 552,673 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in lieu of cash payment for dividends during the year ended June 30, 2010                        |   |                 | -      |   |              |   | -      |                        |   |   | 3,029,465   |   |   |                   | 30,295  |   |            |   | 648,305    |          |   |   | (678,600 | ) |   |   | - |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Convertible notes converted into common stock during the year ended June 30, 2010                                         |   |                 | -      |   |              |   | -      |                        |   |   | 15,659,186  |   |   |                   | 156,592 |   |            |   | 7,462,768  |          |   |   | - |   |   |   | 7,619,360 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in connection with Short-Term Incentive Plan during the year ended June 30, 2010                 |   |                 | -      |   |              |   | -      |                        |   |   | 116,000     |   |   |                   | 1,160   |   |            |   | (1,160     | )             |   |   | - |   |   |   | - |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock for services during the year ended June 30, 2010                                                 |   |                 | -      |   |              |   | -      |                        |   |   | 154,184     |   |   |                   | 1,542   |   |            |   | 52,258     |          |   |   | - |   |   |   | 53,800 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested during the year ended June 30, 2010                                      |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 386,639    |          |   |   | - |   |   |   | 386,639 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Repurchase of warrants during the year ended June 30, 2010                                                                |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (50,000    | )             |   |   | - |   |   |   | (50,000 | ) |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Dividends accrued for the period from April 1, 2010 through June 30, 2010                                                 |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (230,875 | ) |   |   | (230,875 | ) |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                                                                  |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (13,383,513 | ) |   |   | (13,383,513 | ) |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                                                                                                  |   |                 | 9,235  |   |              | $      | 92     |                        |   |   | 50,092,204  |   |   | $                      | 500,922 |   |            | $      | 58,321,169 |          |   | $ | (50,841,159 | ) |   | $ | 7,981,024 |   |
|                                                                                                                      |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   | continued |   |   |   |   |   |

----

|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Deficit         |   |       |          |   |
|-------------------------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|-----------------------------|--------|--------|-------------|--------|--------|------------------------|---------|--------|-----------------|--------|------------|---------------|--------|
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | Accumulated     |   |       |          |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   | During the |   |       | Stockholders' |   |
|                                                                                |   | Preferred Stock |   |   | Common Stock |   |   | Capital in Excess |   |   | Development |   |   | Equity                 |    |
|                                                                                |   | Shares               |   |   | Amount            |   |   | Shares                      |   |   | Amount      |   |   | of Par Value |    |   | Stage           |   |       | (Deficiency)  |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |
| Issuance of common stock at prices ranging from $0.30 per share to $0.36 per share  |   |                 | -      |   |              |   | -      |                        |   |   | 5,911,457   |   |   |                   | 59,114  |   |            |   | 1,794,305  |          |   |   | - |   |   |   | 1,853,419 |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Commissions and other fees related to the issuance of common stock                  |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | (197,908   | )             |   |   | - |   |   |   | (197,908 | ) |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Preferred stock converted into common stock                                         |   |                 | (4,345 | )      |              |   | (43    | )                           |   |   | 13,668,750  |   |   |                   | 136,687 |   |            |   | (136,644   | )             |   |   | - |   |   |   | - |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Warrants converted into common stock                                                |   |                 |   |   |              |   |   |                        |   |   | 175,000     |   |   |                   | 1,750   |   |            |   | -          |          |   |   | - |   |   |   | 1,750 |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in lieu of cash payment for dividends                      |   |                 | -      |   |              |   | -      |                        |   |   | 7,912,266   |   |   |                   | 79,124  |   |            |   | 2,307,066  |          |   |   | (2,155,315 | ) |   |   | 230,875 |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested and amended                        |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 866,235    |          |   |   | - |   |   |   | 866,235 |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Reclassification of warrant liability                                               |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 1,173,296  |          |   |   | - |   |   |   | 1,173,296 |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock under the Company's the Company's long-term incentive plan |   |                 | -      |   |              |   | -      |                        |   |   | 10,000      |   |   |                   | 100     |   |            |   | (100       | )             |   |   | - |   |   |   | - |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Deemed dividend - Preferred Stock                                                   |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | 360,733    |          |   |   | (360,733 | ) |   |   | - |   |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Dividends accrued and unpaid at June 30, 2011                                       |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (122,252 | ) |   |   | (122,252 | ) |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                            |   |                 | -      |   |              |   | -      |                        |   |   | -           |   |   |                   | -       |   |            |   | -          |          |   |   | (7,268,976 | ) |   |   | (7,268,976 | ) |
|                                                                                |   |                 |   |   |              |   |   |                        |   |   |        |   |   |                   |    |   |            |   |       |          |   |   |   |   |   |   |   |   |
| Balance at June 30, 2011                                                            |   |                 | 4,890  |   |              | $      | 49     |                        |   |   | 77,769,677  |   |   | $                      | 777,697 |   |            | $      | 64,488,152 |          |   | $ | (60,748,435 | ) |   | $ | 4,517,463 |   |

----

|                                                                                          |   |                               |       |   |              |   |        |   |   |   | Cumulative |   |
|-----------------------------------------------------------------------------------------------|--------|------------------------------------|------------|--------|-------------------|--------|-------------|--------|--------|--------|------------|--------|
|                                                                                          |   | Year ended June 30, |       |   | Amounts from |   |
|                                                                                          |   | 2011                               |       |   | 2010              |   |        | 2009   |   |   | Inception  |   |
| Cash flows from operating activities:                                                         |   |                               |       |   |              |   |        |   |   |   |       |   |
| Net loss                                                                                      |   | $                                  | (7,268,976 | )      |              | $      | (13,383,513 | )      |   | $      | (5,726,869 | )      |   | $ | (51,870,621 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:                   |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Noncash capital contribution                                                                  |   |                               | -          |   |              |   | -           |   |   |   | -          |   |   |   | 85,179 |   |
| Noncash conversion of accrued expenses into equity                                            |   |                               | -          |   |              |   | -           |   |   |   | -          |   |   |   | 131,250 |   |
| Noncash income related to change in fair value of warrant liability                           |   |                               | (609,239   | )      |              |   | (2,516,661  | )      |   |   | -          |   |   |   | (8,178,926 | ) |
| Noncash charge for change in warrant terms                                                    |   |                               | 115,869    |   |              |   | -           |   |   |   | -          |   |   |   | 115,869 |   |
| Issuance of common stock and warrants for interest                                            |   |                               | -          |   |              |   | 552,673     |   |   |   | 1,007,244  |   |   |   | 2,003,386 |   |
| Issuance of common stock for services                                                         |   |                               | -          |   |              |   | 53,800      |   |   |   | -          |   |   |   | 53,800 |   |
| Stock-based compensation expense                                                              |   |                               | 750,366    |   |              |   | 386,639     |   |   |   | 506,847    |   |   |   | 11,339,949 |   |
| Depreciation and amortization                                                                 |   |                               | 143,274    |   |              |   | 126,567     |   |   |   | 111,753    |   |   |   | 842,282 |   |
| Write-off Intangibles                                                                         |   |                               | 1,588,087  |   |              |   | -           |   |   |   | -          |   |   |   | 1,588,087 |   |
| Deferred rent                                                                                 |   |                               | (8,060     | )      |              |   | (7,957      | )      |   |   | (7,045     | )      |   |   | - |   |
| Amortization of convertible note discount                                                     |   |                               | -          |   |              |   | 9,448,783   |   |   |   | 51,160     |   |   |   | 10,000,000 |   |
| Amortization of deferred financing costs                                                      |   |                               | -          |   |              |   | 632,324     |   |   |   | 426,839    |   |   |   | 1,227,869 |   |
| Loss on extinguishment of debt                                                                |   |                               | -          |   |              |   | 361,877     |   |   |   | -          |   |   |   | 361,877 |   |
| (Increase) decrease in operating assets:                                                      |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Prepaid expenses and other current assets                                                     |   |                               | (141,269   | )      |              |   | (143,447    | )      |   |   | (980,792   | )      |   |   | (1,446,064 | ) |
| Security deposit                                                                              |   |                               | (5,171     | )      |              |   | -           |   |   |   | -          |   |   |   | (12,358 | ) |
| Increase (decrease) in operating liabilities:                                                 |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Accounts payable                                                                              |   |                               | 2,105      |   |              |   | (419,260    | )      |   |   | 606,513    |   |   |   | 559,525 |   |
| Accrued expenses                                                                              |   |                               | 41,572     |   |              |   | 165,046     |   |   |   | 41,670     |   |   |   | 562,555 |   |
| Net cash used in operating activities                                                         |   |                               | (5,391,442 | )      |              |   | (4,743,129  | )      |   |   | (3,962,680 | )      |   |   | (32,636,341 | ) |
|                                                                                          |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Cash flows from investing activities:                                                         |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Patent costs                                                                                  |   |                               | (684,399   | )      |              |   | (807,915    | )      |   |   | (779,563   | )      |   |   | (5,778,677 | ) |
| Redemption of investments, net                                                                |   |                               | -          |   |              |   | 1,050,000   |   |   |   | (550,000   | )      |   |   | - |   |
| Purchase of equipment, furniture and fixtures                                                 |   |                               | (2,026     | )      |              |   | (1,116      | )      |   |   | (4,173     | )      |   |   | (180,205 | ) |
| Net cash (used in) provided by investing activities                                           |   |                               | (686,425   | )      |              |   | 240,969     |   |   |   | (1,333,736 | )      |   |   | (5,958,882 | ) |
|                                                                                          |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Cash flows from financing activities:                                                         |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Proceeds from grant                                                                           |   |                               | -          |   |              |   | -           |   |   |   | -          |   |   |   | 99,728 |   |
| Proceeds from draw-down on line of credit                                                     |   |                               | 4,264      |   |              |   | 2,194,844   |   |   |   | -          |   |   |   | 2,199,108 |   |
| Proceeds from issuance of bridge notes                                                        |   |                               | -          |   |              |   | -           |   |   |   | -          |   |   |   | 525,000 |   |
| Proceeds from issuance of preferred stock and warrants, net                                   |   |                               | -          |   |              |   | 10,754,841  |   |   |   | -          |   |   |   | 10,754,841 |   |
| Redemption of convertible notes and warrants                                                  |   |                               | -          |   |              |   | (2,160,986  | )      |   |   | -          |   |   |   | (2,160,986 | ) |
| Proceeds from issuance of convertible notes                                                   |   |                               | -          |   |              |   | -           |   |   |   | -          |   |   |   | 9,340,000 |   |
| Deferred financing costs                                                                      |   |                               | -          |   |              |   | -           |   |   |   | -          |   |   |   | (651,781 | ) |
| Proceeds from issuance of common stock and warrants, net and exercise of warrants and options |   |                               | 1,657,261  |   |              |   | 1,359,188   |   |   |   | -          |   |   |   | 22,099,267 |   |
| Net cash provided by financing activities                                                     |   |                               | 1,661,525  |   |              |   | 12,147,887  |   |   |   | -          |   |   |   | 42,205,177 |   |
|                                                                                          |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                          |   |                               | (4,416,342 | )      |              |   | 7,645,727   |   |   |   | (5,296,416 | )      |   |   | 3,609,954 |   |
|                                                                                          |   |                               |       |   |              |   |        |   |   |   |       |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                              |   |                               | 8,026,296  |   |              |   | 380,569     |   |   |   | 5,676,985  |   |   |   | - |   |
| Cash and cash equivalents at end of period                                                    |   | $                                  | 3,609,954  |   |              | $      | 8,026,296   |   |   | $      | 380,569    |   |   | $ | 3,609,954 |   |

----

| 1. | Principle Business Activity: |
|----|------------------------------|

|   | · | delay, scale-back or eliminate some or all of its research and product development programs; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | license third parties to develop and commercialize products or technologies that it would otherwise seek to develop and commercialize itself; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | seek strategic alliances or business combinations; |
|--------|--------|----------------------------------------------------|

|   | · | attempt to sell the Company; |
|--------|--------|------------------------------|

|   | · | cease operations; or |
|--------|--------|----------------------|

|   | · | declare bankruptcy. |
|--------|--------|---------------------|

----

| 2. | Summary of Significant Accounting Policies: |
|----|---------------------------------------------|

|   | •  | Level 1: Observable inputs such as quoted prices in active markets; |
|--------|---------------|---------------------------------------------------------------------|

|   | • | Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                       |   | Year Ended June 30, |    |   | Cummulative |   |
|----------------------------|--------|------------------------------------|---------|--------|-------------|--------|
|                       |   | 2011                               |    |   | 2010        |   |   | 2009 |   |   | From Inception |   |
| General and administrative |   |                               | 709,207 |   |        |   | 433,414 |   |   |   | 445,255 |   |   |   | 9,873,917 |   |
| Research and development   |   |                               | 41,159  |   |        |   | 7,025 |   |   |   | 61,592 |   |   |   | 1,519,832 |   |
|                       |   |                               |    |   |        |   |   |   |   |   |   |   |   |   |   |   |
| Total                      |   | $                                  | 750,366 |   |        | $      | 440,439 |   |   | $ | 506,847 |   |   | $ | 11,393,749 |   |

|                        |   | Year Ended June 30, |
|-----------------------------|--------|---------------------|
|                        |   | 2011                |   | 2010 |   | 2009 |
| Risk-free interest rate (1) |   | 1.3%-2.9%           |   | 2.0%-3.9% |   | 1.3%-2.1% |
| Expected volatility         |   | 103-104%            |   | 100-106% |   | 100% |
| Dividend yield              |   | None                |   | None |   | None |
| Expected life (2)           |   | 5.0 - 10.0          |   | 3.5-6.2 |   | 3.0-5.5 |

----

| 3. | Fair Value Measurements: |
|----|--------------------------|

|                      |   | Carrying |      |   | Fair Value Measurement at June 30, 2011 |   |
|---------------------------|--------|----------|-----------|--------|-----------------------------------------------------------------------|--------|
|                      |   | Value    |      |   | Level 1                                                          |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                   |   |     |      |   |                                                                  |   |   |   |   |   |   |   |
| Cash and cash equivalents |   | $        | 3,609,954 |   |                                                                  | $      | 3,609,954 |   |   | $ | - |   |   | $ | - |   |
|                      |   |     |      |   |                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:              |   |     |      |   |                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Warrant liabilities       |   | $        | 711,259   |   |                                                                  | $      | - |   |   | $ | - |   |   | $ | 711,259 |   |

|                      |   | Carrying |      |   | Fair Value Measurement at June 30, 2010 |   |
|---------------------------|--------|----------|-----------|--------|-----------------------------------------------------------------------|--------|
|                      |   | Value    |      |   | Level 1                                                          |   |   | Level 2 |   |   | Level 3 |   |
| Assets:                   |   |     |      |   |                                                                  |   |   |   |   |   |   |   |
| Cash and cash equivalents |   | $        | 8,026,296 |   |                                                                  | $      | 8,026,296 |   |   | $ | - |   |   | $ | - |   |
|                      |   |     |      |   |                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:              |   |     |      |   |                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Warrant liabilities       |   | $        | 2,493,794 |   |                                                                  | $      | - |   |   | $ | - |   |   | $ | 2,493,794 |   |

|                                                                                            |   | Year ended June 30, |       |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|
|                                                                                            |   | 2011                               |       |   | 2010 |   |
|                                                                                            |   |                               |       |   |   |   |
| Beginning Balance                                                                               |   | $                                  | 2,493,794  |   |   | $ | 3,200,108 |   |
| Issuance of common stock warrants, exercisable at $0.35 (37,007,813)                            |   |                               | -          |   |   |   | 1,810,347 |   |
| Reclassification to equity due to change in terms of common stock warrants exercisable at $0.35 |   |                               | (1,173,296 | ) |   |   | - |   |
| Gain due to change in fair value of warrant liabilities, net                                    |   |                               | (609,239   | ) |   |   | (2,516,661 | ) |
|                                                                                            |   |                               |       |   |   |   |   |   |
| Ending Balance                                                                                  |   | $                                  | 711,259    |   |   | $ | 2,493,794 |   |

| 4. | Equipment, Furniture and Fixtures: |
|----|------------------------------------|

|                                |   | June 30, |    |
|-------------------------------------|--------|---------------|---------|
|                                |   | 2011          |    |   | 2010 |   |
| Equipment                           |   | $             | 26,592  |   |   | $ | 24,566 |   |
| Furniture and fixtures              |   |          | 67,674  |   |   |   | 67,674 |   |
|                                |   |          | 94,266  |   |   |   | 92,240 |   |
| Less—Accumulated depreciation |   |          | (90,484 | ) |   |   | (87,686 | ) |
|                                |   | $             | 3,782   |   |   | $ | 4,554 |   |

----

| 5. | Intangible assets: |
|----|--------------------|

|                     |   | June 30, |      |
|--------------------------|--------|---------------|-----------|
|                     |   | 2011          |      |   | 2010 |   |
| Patents approved         |   | $             | 2,059,323 |   |   | $ | 850,419 |   |
| Patents pending          |   |          | 1,979,246 |   |   |   | 4,243,859 |   |
|                     |   |          | 4,038,569 |   |   |   | 5,094,278 |   |
| Accumulated amortization |   |          | (513,838  | ) |   |   | (525,383 | ) |
|                     |   | $             | 3,524,731 |   |   | $ | 4,568,895 |   |

| Year ended June 30, |   |    |    |
|---------------------|--------|---------|---------|
| 2012                |   | $  | 285,000 |   |
| 2013                |   |    | 285,000 |   |
| 2014                |   |    | 285,000 |   |
| 2015                |   |    | 285,000 |   |
| 2016                |   |    | 285,000 |   |

| 6. | Accrued Expenses: |
|----|-------------------|

|                      |   | June 30, |    |
|---------------------------|--------|---------------|---------|
|                      |   | 2011          |    |   | 2010 |   |
| Accrued research          |   | $             | 195,992 |   |   | $ | 218,514 |   |
| Accrued dividends payable |   |          | 122,252 |   |   |   | 230,875 |   |
| Accrued director fees     |   |          | 26,000  |   |   |   | 29,041 |   |
| Accrued patent costs      |   |          | 75,393  |   |   |   | 36,962 |   |
| Accrued legal             |   |          | 58,710  |   |   |   | 29,682 |   |
| Accrued other             |   |          | 29,448  |   |   |   | 31,773 |   |
|                      |   | $             | 509,806 |   |   | $ | 578,857 |   |

----

| 7. | Line of Credit: |
|----|-----------------|

| 8. | Convertible Notes: |
|----|--------------------|

----

| Estimated life in years | 5.0         |
|-------------------------|-------------|
| Risk-free interest rate | 3.5% - 4.4% |
| Volatility              | 100%        |
| Dividend paid           | None        |

| 9. | Warrant Liabilities: |
|----|----------------------|

----

|                                 |   | June 30, 2011 |   |   | June 30, 2010 |   |
|--------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
| Warrants issued on December 20, 2007 |   |                    |   |   |                    |   |
| Estimated life in years              |   |                    | 1.5    |   |                    |   | 2.50 |   |
| Risk-free interest rate (1)          |   |                    | 0.45   | %      |                    |   | 0.80 | % |
| Volatility                           |   |                    | 79     | %      |                    |   | 106 | % |
| Dividend paid                        |   | None                    |   |   | None                    |   |
|                                 |   |                    |   |   |                    |   |   |   |
| Warrants issued on June 30, 2008     |   |                    |   |   |                    |   |   |   |
| Estimated life in years              |   |                    | 2.00   |   |                    |   | 3.00 |   |
| Risk-free interest rate (1)          |   |                    | 0.45   | %      |                    |   | 1.00 | % |
| Volatility                           |   |                    | 79     | %      |                    |   | 106 | % |
| Dividend paid                        |   | None                    |   |   | None                    |   |
|                                 |   |                    |   |   |                    |   |   |   |
| Warrants issued on April 1, 2010     |   |                    |   |   |                    |   |   |   |
| Estimated life in years              |   |                    | 3.75   |   |                    |   | 4.75 |   |
| Risk-free interest rate (1)          |   |                    | 1.29   | %      |                    |   | 1.79 | % |
| Volatility                           |   |                    | 107    | %      |                    |   | 106 | % |
| Dividend paid                        |   | None                    |   |   | None                    |   |
|                                 |   |                    |   |   |                    |   |   |   |
| Warrants issued on June 2, 2010 (2)  |   |                    |   |   |                    |   |   |   |
| Estimated life in years              |   |                    | -      |   |                    |   | 4.9 |   |
| Risk-free interest rate (1)          |   |                    | -      |   |                    |   | 1.79 | % |
| Volatility                           |   |                    | -      |   |                    |   | 106 | % |
| Dividend paid                        |   |                    | -      |   |                    | None   |   |

|   | (1) | Represents the interest rate on a U.S. Treasury security with a maturity date corresponding to that of the warrant term. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Such warrants were amended during the year ended June 30, 2011 and are no longer deemed liabilities. |
|--------|-----|------------------------------------------------------------------------------------------------------|

----

| 10.  | Stockholders’ Equity: |
|-----------|-----------------------------|

----

|                         |   | Series A        |       |   | Series B        |   |      |   |   |
|------------------------------|--------|----------------------|------------|--------|----------------------|--------|-----------|--------|--------|
|                         |   | Preferred Stock |       |   | Preferred Stock |   |      | Total  |   |
| Total gross proceeds         |   | $                    | 10,297,000 |   |                 | $      | 1,200,000 |   |   | $ | 11,497,000 |   |
| Allocated to warrants        |   |                 | (1,530,070 | )      |                 |   | (228,938  | )      |   |   | (1,759,008 | ) |
| Allocated to preferred stock |   | $                    | 8,766,930  |   |                 | $      | 971,062   |   |   | $ | 9,737,992 |   |

----

----

| 11.  | Stock-Based Compensation |
|-----------|--------------------------|

----

|                                                                               |   |      |       |   | Weighted            |   |
|------------------------------------------------------------------------------------|--------|-----------|------------|--------|---------------------|--------|
|                                                                               |   | Aggregate |       |   | Average             |   |
|                                                                               |   | Number    |       |   | Exercise Price |   |
| Outstanding, July 31, 2008                                                         |   |      | 3,715,600  |   |                | $      | 1.95 |   |
| Granted                                                                            |   |      | 834,812    |   |                |   | 0.59 |   |
| Exercised                                                                          |   |      | -          |   |                |   | - |   |
| Cancelled                                                                          |   |      | -          |   |                |   | - |   |
| Expired                                                                            |   |      | -          |   |                |   | - |   |
| Outstanding, June 30, 2009                                                         |   |      | 4,550,412  |   |                |   | 1.70 |   |
| Granted                                                                            |   |      | 2,951,760  |   |                |   | 0.43 |   |
| Exercised                                                                          |   |      | -          |   |                |   | - |   |
| Cancelled                                                                          |   |      | -          |   |                |   | - |   |
| Expired                                                                            |   |      | (233,000   | )      |                |   | 3.45 |   |
| Outstanding, June 30, 2010                                                         |   |      | 7,269,172  |   |                |   | 1.13 |   |
| Granted                                                                            |   |      | 4,579,142  |   |                |   | 0.26 |   |
| Exercised                                                                          |   |      | -          |   |                |   | - |   |
| Cancelled                                                                          |   |      | -          |   |                |   | - |   |
| Expired                                                                            |   |      | (500,000   | )      |                |   | 1.14 |   |
| Outstanding, June 30, 2011                                                         |   |      | 11,348,314 |   |                | $      | 0.78 |   |
|                                                                               |   |      |       |   |                |   |   |   |
| Options exercisable at June 30, 2011                                               |   |      | 7,274,422  |   |                | $      | 1.04 |   |
| Options exercisable at June 30, 2010                                               |   |      | 5,146,671  |   |                | $      | 1.34 |   |
| Options exercisable at June 30, 2009                                               |   |      | 3,667,412  |   |                | $      | 1.90 |   |
|                                                                               |   |      |       |   |                |   |   |   |
| Weigthed average fair value of options granted during the year ended June 30, 2011 |   | $         | 0.21       |   |                |   |   |   |
| Weigthed average fair value of options granted during the year ended June 30, 2010 |   | $         | 0.33       |   |                |   |   |   |
| Weigthed average fair value of options granted during the year ended June 30, 2009 |   | $         | 0.45       |   |                |   |   |   |

----

|                                      |   |           |       |   | Weighted-average |   |
|-------------------------------------------|--------|----------------|------------|--------|------------------|--------|
|                                      |   | Number of |       |   | Grant-Date       |   |
|                                      |   | Options        |       |   | Fair Value  |   |
| Non-vested stock options at July 1, 2010  |   |           | 2,122,501  |   |             | $      | 0.48 |   |
| Granted                                   |   |           | 4,579,142  |   |             |   | 0.21 |   |
| Vested                                    |   |           | (2,187,751 | )      |             |   | 0.27 |   |
| Forfeited                                 |   |           | (440,000   | )      |             |   | 0.77 |   |
| Non-vested stock options at June 30, 2011 |   |           | 4,073,892  |   |             | $      | 0.25 |   |

| Strike Price |   |   | Warrants |   |
|-------------------|--------|--------|----------|--------|
| $                 | 7.00   |   |     |   | 10,000 |   |
| $                 | 3.45   |   |     |   | 15,000 |   |
| $                 | 3.15   |   |     |   | 20,000 |   |
| $                 | 2.35   |   |     |   | 15,000 |   |
| $                 | 2.15   |   |     |   | 110,000 |   |
| $                 | 1.40   |   |     |   | 5,000 |   |
| $                 | 1.18   |   |     |   | 993,153 |   |
| $                 | 1.08   |   |     |   | 2,500 |   |
| $                 | 1.07   |   |     |   | 139,041 |   |
| $                 | 1.01   |   |     |   | 5,900,000 |   |
| $                 | 0.99   |   |     |   | 1,000 |   |
| $                 | 0.90   |   |     |   | 388,889 |   |
| $                 | 0.74   |   |     |   | 151,314 |   |
| $                 | 0.60   |   |     |   | 2,770,850 |   |
| $                 | 0.50   |   |     |   | 2,853,126 |   |
| $                 | 0.35   |   |     |   | 37,007,813 |   |
| $                 | 0.32   |   |     |   | 4,388,540 |   |
| $                 | 0.26   |   |     |   | 5,000 |   |
| $                 | 0.01   |   |     |   | 525,000 |   |
|              |   |   |     |   |   |   |
|              |   |   |     |   | 55,301,226 |   |

----

| 12.  | Income Taxes: |
|-----------|---------------|

----

|                                                     |   | June 30, |   |
|----------------------------------------------------------|--------|---------------|--------|
|                                                     |   | 2011          |   |   | 2010 |   |   | 2009 |   |
| Federal income tax provision at statutory rate           |   |          | (34.0  | )% |   |   | (34.0 | )% |   |   | (34.0 | )% |
| Fair value - warrant liability                           |   |          | (2.8   | )% |   |   | (6.4 | )% |   |   | - |   |
| Stock-based compensation                                 |   |          | 3.5    | % |   |   | 1.0 | % |   |   | 0.5 | % |
| Amortization of debt discount and finance costs          |   |          | -      |   |   |   | 23.0 | % |   |   | 5.8 | % |
| Other                                                    |   |          | (1.6   | )% |   |   | (0.5 | )% |   |   | 0.1 | % |
| Change in valuation allowance                            |   |          | 34.9   | % |   |   | 16.9 | % |   |   | 27.6 | % |
|                                                     |   |          |   |   |   |   |   |   |   |   |   |   |
| Actual income tax provision (benefit) effective tax rate |   |          | -      | % |   |   | - | % |   |   | - | % |

|                             |   | June 30, |        |
|----------------------------------|--------|---------------|-------------|
|                             |   | 2011          |        |   | 2010 |   |
| Deferred tax assets:             |   |          |        |   |   |   |
| Net operating loss carryforwards |   | $             | 15,931,894  |   |   | $ | 12,943,177 |   |
| Stock-based compensation         |   |          | 2,101,085   |   |   |   | 1,800,939 |   |
| Other                            |   |          | (95,928     | ) |   |   | (53,916 | ) |
|                             |   |          | 17,937,051  |   |   |   | 14,690,200 |   |
| Valuation allowance              |   |          | (17,937,051 | ) |   |   | (14,690,200 | ) |
| Net deferred tax asset           |   | $             | -           |   |   | $ | - |   |

| 13.  | Commitments: |
|-----------|--------------|

----

| 14.  | Collaborative Arrangements: |
|-----------|-----------------------------|

| 15.  | Grant Income: |
|-----------|---------------|

----

| 16.  | Supplemental Cash Flow Information |
|-----------|------------------------------------|

|                                                                                  |   |                               |      |   |              |   |      |   |   |   | Cumulative |   |
|---------------------------------------------------------------------------------------|--------|------------------------------------|-----------|--------|-------------------|--------|-----------|--------|--------|--------|------------|--------|
|                                                                                  |   | Year ended June 30, |      |   | Amounts from |   |
|                                                                                  |   | 2011                               |      |   | 2010              |   |      | 2009   |   |   | Inception  |   |
| Supplemental disclosure of non-cash transactions:                                     |   |                               |      |   |              |   |      |   |   |   |       |   |
| Conversion of convertible note into common stock                                      |   | $                                  | -         |   |              | $      | 7,619,360 |   |   | $      | 7,619,360  |   |   | $ | 10,000,000 |   |
| Conversion of bridge notes into common stock                                          |   |                               | -         |   |              |   | -         |   |   |   | -          |   |   |   | 534,316 |   |
| Conversion of preferred stock into common stock                                       |   |                               | 136,644   |   |              |   | -         |   |   |   | -          |   |   |   | 207,331 |   |
| Allocation of preferred stock proceeds to warrants and beneficial conversion feature  |   |                               | 360,733   |   |              |   | -         |   |   |   | -          |   |   |   | 7,449,780 |   |
| Allocation of convertible debt proceeds to warrants and beneficial conversion feature |   |                               | -         |   |              |   | -         |   |   |   | -          |   |   |   | 9,340,000 |   |
| Warrants issued for financing costs                                                   |   |                               | -         |   |              |   | -         |   |   |   | -          |   |   |   | 690,984 |   |
| Issuance of common stock for interest payments on convertible notes                   |   |                               | -         |   |              |   | 552,673   |   |   |   | 552,673    |   |   |   | 2,003,386 |   |
| Issuance of common stock for dividend payments on preferred stock                     |   |                               | 2,155,315 |   |              |   | -         |   |   |   | -          |   |   |   | 3,574,346 |   |
| Issuance of common stock in settlement of accounts payable                            |   |                               | -         |   |              |   | 175,000   |   |   |   | 175,000    |   |   |   | 175,000 |   |
| Dividends accrued on preferred stock                                                  |   |                               | 122,252   |   |              |   | -         |   |   |   | -          |   |   |   | 122,252 |   |
| Supplemental disclosure of cash flow information:                                     |   |                               |      |   |              |   |      |   |   |   |       |   |   |   |   |   |
| Cash paid for interest                                                                |   |                               | 110,649   |   |              |   | 59,645    |   |   |   | 59,645     |   |   |   | 237,134 |   |

----