Read the year end financial statement. Page 12 says "In the fiscal year of 2011, the Company sold 18,765,689 shares for $135,223. That works out to $.007 per share.
Currently investors have to hold those shares for a year before they can start selling them (like they did today I assume).
After they become fully reporting, they will be able to start dumping them after only 6 months. No wonder the company is spending (wasting) all that money to get audits and start filing with the SEC. Faster turn around times means more easy funding. Issue cheap stock... free up cheap stock... dump cheap stock into market for a 100% - 400% markup... repurchase cheap stock.. rinse .... repeat...
then.. every once in a while.. reverse split and start all over again.