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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q /A
 
x
 
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2009
or
 
o
 
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                     to                    
 
Commission File Number 0-29185
 
SAVE THE WORLD AIR, INC.
(Exact name of registrant as specified in its charter)
 
Nevada
52-2088326
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
 
235 Tennant Avenue
Morgan Hill, California 95037
(Address, including zip code, of principal executive offices
(408) 778-0101
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Exchange Act: None.
 
Securities registered pursuant to Section 12(g) of the Exchange Act: Common Stock, $0.001 par value.
 
Check whether the Registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o
 
Accelerated filer  o
 
Non-accelerated filer  o  (Do not check if a smaller reporting company)
Smaller reporting company  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  o   No  x
 
The number of shares of the Registrant’s Common Stock outstanding as of August 11, 2009 was 65,676,057 shares.
 
 
 
 

 
SAVE THE WORLD AIR, INC.
FORM 10-Q
 INDEX
 
       
   
Page
 
PART I
     
       
ITEM 1. Financial Statements
     
Condensed consolidated balance sheets
    3  
Condensed consolidated statements of operations (unaudited)
    4  
Condensed consolidated statement of changes in stockholders’ deficiency (unaudited)
    5  
Condensed consolidated statements of cash flows (unaudited)
    14  
Notes to condensed consolidated financial statements (unaudited)
    16  
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
    28  
ITEM 3. Quantitative and Qualitative Disclosure About Market Risk
    37  
ITEM 4. Controls and Procedures
    37  
       
PART II
     
       
ITEM 1. Legal Proceedings
    39  
ITEM 1A. Risk Factors
    40  
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
    40  
ITEM 3. Defaults Upon Senior Securities
    41  
ITEM 4. Submission of Matters to a Vote of Security Holders
    41  
ITEM 5. Other Information
    42  
ITEM 6. Exhibits
    42  
       
SIGNATURES
    43  
       
EXHIBIT INDEX
    44  
       
EXHIBIT 31.1
     
EXHIBIT 31.2
     
EXHIBIT 32
     
 
 
 
2

 
 
PART I
Item 1. Financial Statements
SAVE THE WORLD AIR, INC. AND SUBSIDIARY
 (A DEVELOPMENT STAGE ENTERPRISE)

 CONDENSED CONSOLIDATED BALANCE SHEETS
   
   
June 30, 2009
(unaudited)
   
December 31,
2008
 
ASSETS
               
Current assets
               
Cash
 
$
5,195
   
$
59,346
 
Other current assets
   
23,047
     
33,275
 
Total current assets
   
28,242
     
92,621
 
Property and Equipment, net of accumulated depreciation and amortization of $127,969 and $111,193, respectively
   
115,193
     
131,969
 
Other assets
   
11,020
     
11,250
 
Total assets
 
$
154,455
   
$
235,840
 
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
               
Current liabilities
               
Accounts payable-related parties
 
$
156,227
   
$
93,003
 
Accounts payable-License Agreements
   
840,750
     
716,500
 
Accounts payable-other
   
501,310
     
384,467
 
Accrued expenses
   
1,022,976
     
803,795
 
Accrued professional fees
   
431,242
     
390,535
 
Loans payable-related parties and shareholders
   
162,341
     
78,280
 
Convertible debentures, net-related parties
   
39,782
     
12,466
 
Convertible debentures, net-others
   
847,253
     
290,659
 
Total current liabilities
   
4,001,881
     
2,769,705
 
                 
Commitments and contingencies
               
                 
Stockholders’ deficiency
               
Common stock, $.001 par value: 200,000,000 shares authorized, 65,508,160 and 62,940,891 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively
   
65,508
     
62,941
 
Common stock to be issued (99,200 shares at June 30, 2009 and 97,059 shares at December 31, 2008 respectively)
   
33,750
     
16,500
 
Additional paid-in capital
   
41,328,142
     
40,129,758
 
Deficit accumulated during the development stage
   
(45,274,826)
     
(42,743,064
)
Total stockholders’ deficiency
   
(3,847,426)
     
(2,533,865
)
Total liabilities and stockholders’ deficiency
 
$
           154,455
   
$
235,840
 

 
See notes to condensed consolidated financial statements.

 
3

 

SAVE THE WORLD AIR, INC. AND SUBSIDIARY
 (A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

   
Three months ended
June 30,
   
Six months ended
June 30,
   
For the Period From
February 18, 1998 (Date of Inception) through
 
   
2009
   
2008
   
2009
   
2008
   
June 30, 2009
 
                               
Net sales
 
$
-
   
$
-
   
$
-
   
$
-
   
$
69,000
 
Cost of goods sold
   
-
     
-
     
-
     
-
     
24,120
 
Gross profit
   
-
     
-
     
-
     
-
     
44,880
 
                                         
Operating expenses
   
594,604
     
519,860
     
1,435,422
     
1,280,002
     
31,362,362
 
                                         
Research and development expenses
   
15,220
     
62,692
     
262,060
     
322,362
     
5,720,653
 
                                         
Non-cash patent settlement costs
   
-
     
-
     
-
     
-
     
1,610,066
 
                                         
Loss before other income (expense)
   
(609,824
   
(582,552
)
   
(1,697,482)
     
(1,602,364
)
   
(38,648,201
)
                                         
Other income (expense)
                                       
Other income
   
-
     
11
     
-
     
563
     
   (1,140
Interest income
   
-
     
-
     
-
     
2
     
16,342
 
Interest expense
   
(369,720
)    
(161,556
)
   
(834,280)
     
(488,559
)
   
(6,788,586
)
Loss on sale of equipment
   
-
     
-
     
-
     
(9,683
)
   
(14,426
)
Settlement of debt due Morale/Matthews
   
-
     
-
     
-
     
(927,903
)
   
(927,903
)
Settlement of litigation and debt
   
-
     
52,070
     
-
     
52,070
     
1,089,088
 
                                         
Net loss
 
$
(979,544
)  
$
(692,027
)
 
$
(2,531,762)
   
$
(2,975,874
)
 
$
(45,274,826
)
                                         
Net loss per share, basic and diluted
 
$
(0.02
)  
$
(0.02
)
 
$
(0.04)
   
$
(0.06
)
       
                                         
Weighted average shares outstanding, basic and diluted
   
65,037,789
     
44,938,165
     
64,504,305
     
46,979,175
         

 
See notes to condensed consolidated financial statements.

 
4

 
 
SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 
   
Price per
   
Common Stock
   
Common
Stock
to be
   
Additional
Paid-in
   
Deferred
   
Deficit
Accumulated
During the
Development
 
Total
Stockholders
 
   
Share
   
Shares
   
Amount
   
Issued
   
Capital
   
Compensation
   
Stage
 
Deficiency
 
Balance, February 18, 1998  (date of inception)
         
   
$
   
$
   
$
   
$
   
$
 —
 
$
 
Issuance of common stock on April 18, 1998
   
.0015 - .01
     
10,030,000
     
10,030
     
     
14,270
     
     
   
24,300
 
Net loss
           
     
     
     
     
     
(21,307
)
 
(21,307
)
Balance, December 31, 1998
           
10,030,000
   
$
10,030
   
$
     
14,270
   
$
   
$
(21,307
)
$
2,993
 
Issuance of common stock on May 18, 1999
   
1.00 - 6.40
     
198,003
     
198
     
     
516,738
     
     
   
516,936
 
Issuance of common stock for ZEFS on September 14, 1999
   
.001
     
5,000,000
     
5,000
     
     
     
     
   
5,000
 
Stock issued for professional services on May 18, 1999
   
0.88
     
69,122
     
69
     
     
49,444
     
     
   
49,513
 
Net loss
           
     
     
     
     
     
(1,075,264
)
 
(1,075,264
)
Balance, December 31, 1999
           
15,297,125
   
$
15,297
   
$
   
$
580,452
   
$
   
$
(1,096,571
)
$
(500,822
)
 
 
(continued)
5


SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 
 
Price per
 
Common Stock
 
Common
Stock
to be
 
Additional
Paid-in
 
Deferred
 
Deficit
Accumulated
During the
Development
 
Total
Stockholders
 
 
Share
 
Shares
   
Amount
 
Issued
 
Capital
 
Compensation
 
Stage
 
Deficiency
 
Balance, December 31, 1999
     
15,297,125
   
$
15,297
 
$
 
$
580,452
 
$
 
$
(1,096,571
$
(500,822
Issuance of common stock for services
$0.38 - $5.31
   
305,810
     
306
   
   
588,704
   
   
   
589,010
 
Stock issued for employee compensation on February 8, 2000
$1.03-$5.31
   
42,000
     
42
   
   
137,378
   
   
   
137,420
 
Stock issued for directors fees
$3.38-$4.44
   
56,000
     
56
   
   
195,584
   
   
   
195,640
 
Common stock cancelled
     
(55,000
   
(55
       
(64,245
             
(64,300
Net loss
     
     
   
   
   
   
(1,270,762
)
 
(1,270,762
Balance, December 31, 2000
     
15,645,935
     
15,646
   
   
1,437,873
   
   
(2,367,333
)
 
(913,814
Issuance of common stock for services
$0.25-$1.65
   
1,339,912
     
1,340
   
   
1,031,231
   
   
   
1,032,571
 
Stock issued for directors fees
$0.60-$0.95
   
1,100,000
     
1,100
         
1,008,900
               
1,010,000
 
Intrinsic value of options issued to employees
                         
2,600,000
   
(2,600,000)
         
 
Fair value of options issued to non-employees
                         
142,318
               
142,318
 
Amortization of deferred compensation
                               
191,667
         
191,667
 
Net loss
                                     
(2,735,013
 
(2,735,013
Balance, December 31, 2001
     
18,085,847
   
$
18,086
 
$
 
$
6,220,322
 
$
(2,408,333
$
(5,102,346
)
$
(1,272,271
 
 
(continued)
6


SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (continued)
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 
   
Price per
   
Common Stock
 
Common
Stock
to be
   
Additional
Paid-in
   
Deferred
   
Deficit
Accumulated
During the
Development
   
Total
Stockholders
 
   
Share
   
Shares
   
Amount
 
Issued
   
Capital
   
Compensation
   
Stage
   
Deficiency
 
Balance, December 31, 2001
         
18,085,847
   
$
18,086
 
$
   
$
6,220,322
   
$
(2,408,333
 
$
(5,102,346
 
$
(1,272,271
Stock issued for directors fees
   
0.40
     
2,150,000
     
2,150
   
     
857,850
     
     
     
860,000
 
Common stock sold (2,305,000 
shares)
   
0.15-0.25
     
     
   
389,875
     
     
     
     
389,875
 
Fair value of options issued to non-employees for services
           
     
   
     
54,909
     
(54,909
)
   
     
 
Amortization of deferred compensation
           
     
   
     
     
891,182
     
     
891,182
 
Net loss
           
     
   
     
     
     
(2,749,199
)
   
(2,749,199
)
Balance, December 31, 2002
           
20,235,847
     
20,236
   
389,875
     
7,133,081
     
(1,572,060)
     
(7,851,545
)
   
(1,880,413
)
Common stock issued previously paid for
   
0.15-0.25
     
2,305,000
     
2,305
   
(433,750
)
   
431,445
     
     
     
 
Sale of common stock
  $
0.25
     
9,504,000
     
9,504
           
2,366,439
     
     
     
2,375,943
 
Issuance of common stock for services
  $
0.55
     
83,414
     
83
   
     
45,794
     
     
     
45,877
 
Common stock issued for convertible debt
  $
0.25
     
2,000,000
     
2,000
           
498,000
     
     
     
500,000
 
Finders’ fees related to stock issuances
           
     
   
43,875
     
(312,582
)
   
     
     
(268,707
)
Common stock
sold (25,000 
shares)
   
0.25
     
     
   
6,250
     
     
     
     
6,250
 
Amortization of deferred comp
           
     
   
     
     
863,727
     
     
863,727
 
Net loss
                                                 
(2,476,063
   
(2,476,063
Balance, December 31, 2003
           
34,128,261
   
$
34,128
 
$
6,250
   
$
10,162,177
   
$
(708,333
 
$
(10,327,608
)
 
$
(833,386
)
 
 
(continued)
7


SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (continued)
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 
   
Price per
   
Common Stock
 
Common
Stock
to be
 
Additional
Paid-in
   
Deferred
   
Deficit
Accumulated
During the
Development
   
Total
Stockholders
 
   
Share
   
Shares
   
Amount
 
Issued
 
Capital
   
Compensation
   
Stage
   
Deficiency
 
       
Balance, December 31, 2003
         
34,128,261
   
$
34,128
 
$
6,250
 
$
10,162,177
   
$
(708,333
 
$
(10,327,608
)
 
$
(833,386
Common stock issued previously paid for
  $
.25
     
25,000
     
25
   
(6,250)
   
6,225
                     
 
Sale of common stock
  $
1.00
     
1,272,500
     
1,273
   
119,000
   
1,271,227
     
     
     
1,391,500
 
Stock issued for services
  $
 
.15-$1.70
     
1,268,560
1,
   
1,268
         
1,388,663
                     
1,389,931
 
Stock issued for directors fees
  $
1.50
     
50,000
     
50
   
   
74,950
     
     
     
75,000
 
Common stock issued for convertible debt
  $
1.53
     
60,000
     
60
         
91,740
     
     
     
91,800
 
Common stock issued upon exercise of warrants and options
  $
.20 -$.40
     
960,500
     
960
   
   
193,240
     
     
     
194,200
 
Common stock issued for patent settlement
  $
1.24
     
20,000
     
20
         
24,780
                     
24,800
 
Fair value of warrants issued
                               
1,614,138
                     
1,614,138
 
Fair value of options issued to employees
           
     
   
   
248,891
     
(248,891
)
   
     
 
Fair value of options issued to non-employees
           
     
   
   
55,381
     
(55,381
)
   
     
 
Amortization of deferred compensation
           
     
   
   
     
936,537
     
     
936,537
 
Finders’ fees related to stock issuances
                               
(88,384
                       
Net loss
           
     
   
   
     
     
(6,803,280
)
   
(6,803,280
)
Balance, December 31, 2004
           
37,784,821
   
$
37,784
 
$
119,000
 
$
15,043,028
   
$
(76,068
 
$
(17,130,888
)
 
$
(2,007,144
)
 
 
 
(continued)
8

 
SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (continued)
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 
 
Price per
 
Common Stock
 
Common
Stock
to be
 
Additional
Paid-in
   
Deferred
   
Deficit
Accumulated
During the
Development
   
Total
Stockholders
 
 
Share
 
Shares
   
Amount
 
Issued
 
Capital
   
Compensation
   
Stage
   
Deficiency
 
Balance, December 31, 2004
     
37,784,821
   
$
37,784
 
$
119,000
 
$
15,043,028
   
$
(76,068
 
$
(17,130,888
)
 
$
(2,007,144
Common stock issued previously paid for
$1.00
   
119,000
     
119
   
(119,000
 
118,881
     
     
     
 
Sale of common stock
$1.00
   
1,530,500
     
1,530
         
1,528,970
     
     
     
1,530,500
 
Common stock issued upon exercise of warrants
$.40 - $1.00
   
500
     
1
   
   
199
     
     
     
200
 
Common stock to be issued for settlement of payables
                   
612,521
                           
612,521
 
Fair value of options issued for settlement costs
                         
31,500
                     
31,500
 
Fair value of warrants issued
                         
18,462
                     
18,462
 
Fair value of warrants issued and intrinsic value of beneficial conversion associated with convertible notes
                         
1,453,181
                     
1,453,181
 
Fair value of options issued to employees
     
     
   
   
243,750
     
(243,750
)
   
     
 
Amortization of deferred compensation
     
     
   
   
     
177,631
     
     
177,631
 
Finders’ fees related to stock issuances
                         
(109,840
                   
(109,840
Common stock cancelled
     
(8,047,403
   
(8,047
       
8,047
                     
 
Net loss
     
     
   
   
     
     
(3,115,186
)
   
(3,115,186
)
Balance, December 31, 2005
     
31,387,418
   
$
31,387
 
$
612,521
 
$
18,336,178
   
$
(142,187
 
$
(20,246,074
)
 
$
(1,408,175
)
 
 
(continued)
9


SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (continued)
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 
 
Price per
 
Common Stock
 
Common
Stock
to be
 
Additional
Paid-in
   
Deferred
   
Deficit
Accumulated
During the
Development
   
Total
Stockholders
 
 
Share
 
Shares
   
Amount
 
Issued
 
Capital
   
Compensation
   
Stage
   
Deficiency
 
Balance, December 31, 2005
     
31,387,418
   
$
31,387
 
$
612,521
 
$
18,336,178
   
$
(142,187)
   
$
(20,246,074
)
 
$
(1,408,175
Common stock issued previously paid for
     
846,549
     
847
   
(612,521
 
611,674
     
     
     
 
Sale of common stock
$1.00 - $1.89
   
1,360,537
     
1,360
   
60,000
   
2,401,048
     
     
     
2,462,408
 
Common stock issued upon exercise of warrants
$.50 - $1.50
   
2,583,533
     
2,584
   
   
1,794,944
     
     
     
1,797,528
 
Common stock to be issued for convertible debt
$.70
   
3,416,186
     
3,417
         
2,356,449
                     
2,359,866
 
Common stock to be issued for  out of line of credit
$.55 - $1.22
   
487,483
 
   
487
         
379,610
                     
380,097
 
Fair value of options issued to employees
     
     
   
   
2,253,263
             
     
2,253,263
 
Fair value of options issued for settlement costs
                         
31,500
                     
31,500
 
Fair value of warrants issued for services
                         
463,627
                     
463,627
 
 Fair value of warrants issued and intrinsic value of beneficial conversion associated with convertible notes
                         
1,259.696
                     
1,259,696
 
Write off of  deferred compensation
     
     
   
   
(142,187
   
142,187
     
     
 
Finders’ fees related to stock issuances
                         
(284,579
                   
(284,579
Fees paid on equity line of credit
                         
(30,402
                   
(30,402
Net loss
     
     
   
   
     
     
(10,181,523
)
   
(10,181,523
)
Balance, December 31, 2006
     
40,081,757
   
$
40,082
 
$
60,000
 
$
29,430,821
   
$
   
$
(30,427,597
)
 
$
(896,694
)
 
 
(continued)
10


SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (continued)
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 
 
Price per
 
Common Stock
   
Common
Stock
to be
   
Additional
Paid-in
   
Deficit
Accumulated
During the
Development
   
Total
Stockholders
 
 
Share
 
Shares
   
Amount
   
Issued
   
Capital
   
Stage
   
Deficiency
 
Balance, December 31, 2006
     
40,081,757
   
$
40,082
   
$
60,000
   
$
29,430,821
   
$
(30,427,597
)
 
$
(896,694
Common stock issued previously paid for
     
2,597,524
     
2,598
     
(60,000
   
57,402
     
     
 
Common stock to be issued for convertible debt
$.17 - $.53
   
1,910,711
     
1,911
             
524,569
             
526,480
 
Common stock  issued for  put of line of credit
$.27 - $.73
   
1,880,421
     
1,880
             
990,175
             
992,055
 
Common stock granted for services
                     
4,000
                     
4,000
 
Fair value of options issued to employees
     
     
     
     
67,592
     
     
67,592
 
Fair value of warrants issued for services
                             
35,340
             
35,340
 
 Fair value of warrants issued and intrinsic value of beneficial conversion associated with convertible notes
                             
1,253,548
             
1,253,548
 
Fees paid on equity line of credit
                             
(79,364
           
(79,364
Net loss
     
     
     
     
     
(6,262,743
)
   
(6,262,743
)
Balance, December 31, 2007
     
46,470,413
   
$
46,471
   
$
4,000
   
$
32,280,083
   
$
(36,690,340
)
 
$
(4,359,786
)
 
 
 
(continued)
11


SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (continued)
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 
 
Price per
 
Common Stock
   
Common
Stock
to be
   
Additional
Paid-in
   
Deficit
Accumulated
During the
Development
   
Total
Stockholders
 
 
Share
 
Shares
   
Amount
   
Issued
   
Capital
   
Stage
   
Deficiency
 
Balance, December 31, 2007
     
46,470,413
   
$
46,471
   
$
4,000
   
$
32,280,083
   
$
(36,690,340
)
 
$
(4,359,786
)
Common stock issued for convertible debt
$.17 - $.53
   
5,575,082
     
5,574
     
16,500
     
1,936,171
     
     
1,958,245
 
Common stock issued for Morale/ Matthews settlement
$.38
   
7,421,896
     
7,422
     
     
2,776,289
     
     
2,783,711
 
Common stock issued for services
$.17 - $.49
   
2,398,850
     
2,399
     
     
516,230
     
     
518,629
 
Common stock issued upon exercise of warrants
$.50
   
1,064,650
     
1,065
     
     
531,260
     
     
532,325
 
Fair value of options issued as compensations
   
     
     
     
645,745
     
     
645,745
 
Fair value of warrants issued and intrinsic value of beneficial conversion associated with convertible notes
   
     
     
     
1,323,077
     
     
1,323,077
 
Fair value of warrants issued to PIPE holders
   
     
     
     
116,913
     
     
116,913
 
Common stock issued for services
0.17
   
10,000
     
10
     
(4,000
)
   
3,990
     
     
 
Net loss
   
     
     
     
     
(6,052,724
)
   
(6,052,724
 
Balance, December 31, 2008
     
62,940,891
   
$
62,941
   
$
16,500
   
$
40,129,758
   
$
(42,743,064
)
 
$
(2,533,865
)
 
 
(continued)
12


SAVE THE WORLD AIR, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (continued)
FROM FEBRUARY 18, 1998 (INCEPTION) TO JUNE 30, 2009
 

   
Price per
   
Common Stock
   
Common Stock to be
   
Additional
Paid-in
   
Deficit Accumulated During the Development
   
Total
Stockholders’
 
   
Share
   
Shares
   
Amount
   
Issued
   
Capital
   
Stage
   
Deficiency
 
Balance, December 31, 2008
          62,940,891     $ 62,941     $ 16,500     $ 40,129,758     $ (42,743,064 )   $ (2,533,865 )
Common stock issued for convertible debt
    0.15-0.50       2,014,914       2,015       (16,500 )     430,614             416,129  
Common stock issued for services
    0.17-0.49       502,355       502             173,911             174,413  
Common stock issued for settlement of accounts payable
    0.27       50,000       50       33,750       13,450             47,250  
Fair value of options issued as compensation
                            44,498             44,498  
Fair value of warrants issued for note payable
                            1,248             1,248  
 Fair value of warrants issued and intrinsic value of beneficial conversion associated with convertible notes