Quarterly report pursuant to sections 13 or 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Statement of Cash Flows [Abstract]    
Net Loss $ (1,904,975) $ (1,255,794)
Adjustments to reconcile net loss to net cash provided in operating activities:    
Depreciation Expense 8,388 9,601
Amortization Expense 102,190 153,484
Issuance of Common Stock for Services 324,714 9,690
Accretion of discount on convertible notes payable 49,043   
Stock Compensation Expense 192,049 385,137
Gain on Extinguishment of Debt (76,280)   
Decrease (increase) in operating assets    
Accounts Receivable 1,757 192,617
Inventory (4,850) (129,825)
Prepaid Expenses & Other Assets (125,886) (35,000)
Increase (decrease) in operating liabilities    
Accounts Payable (116,043) (193,246)
Accrued Salaries 243,332 128,713
Accrued Interest 41,333   
Accrued Interest - Related Party 44,100 93,562
Other Accrued Expenses 2,218 103,727
Net cash provided/(used) in operating activities (1,218,910) (537,334)
Cash Flows from Investing Activities:    
Investment in Intangible Assets (40,048) (162,177)
Purchase of Fixed Assets (1,898) (7,720)
Net cash provided/(used) by investing activities (41,946) (169,897)
Cash Flows from Financing Activities:    
Sale of Common Stock 200,000 860,000
Common Stock Offering Cost    (1,770)
Proceeds from long term debenture 1,000,000   
Issuance costs on long term debenture (194,972)   
Payments on Related Party Debt    (120,000)
Net cash provided/(used) by financing activities 1,005,028 738,230
Net increase/(decrease) in cash (255,828) 30,999
Beginning Cash Balance 405,341 207,880
Ending Cash Balance 149,513 238,879
Supplemental disclosures of cash flow information:    
Cash paid for income taxes      
Cash paid for interest 4,012 2,662
Related Party Note converted to Common Stock 1,745,546 200,000
Warrants granted for debenture issuance costs 28,929   
Discount on long term debentures attributed to Warrants $ 379,688