SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2012

Summary Of Significant Accounting Policies Tables

BASIC AND DILUTED EARNINGS (LOSS) PER SHARE

Such securities shown below, presented on a common share equivalent basis and outstanding as of June 30, 2012 has been excluded from the per share computations as their effect would be anti-dilutive:

	June 30, 2012
Convertible Preferred Stock		13,035
Convertible Bridge Notes and Notes Payable		18,955,223

DERIVATIVE LIABILITIES

Upon issuance the fair value was calculated using the Black-Scholes option pricing model with the following factors, assumptions, and methodologies:

	June 30, 2012			December 31, 2011

Fair value of Company’s common stock	$	0.1923		$	0.959
Volatility		150% - 354	%		171%-250	%
Exercise price	$	0.1918–0.3452		$	0.5754-0.959
Estimated life	1 year			1 year
Risk free interest rate (based on 1-year treasury rate)		.16	%		.15	%

Fair value of financial instruments

Upon issuance the fair value was calculated using the Black-Scholes option pricing model with the following factors, assumptions, and methodologies:

	June 30, 2012			December 31, 2011

Fair value of Company’s common stock	$	0.1923		$	0.959
Volatility		150% - 354	%		171%-250	%
Exercise price	$	0.1918–0.3452		$	0.5754-0.959
Estimated life	1 year			1 year
Risk free interest rate (based on 1-year treasury rate)		.16	%		.15	%

SavWatt USA, Inc. 10-Q/A