Quarterly report pursuant to sections 13 or 15(d)

Statements of Cash Flows (unaudited)

v2.4.0.8
Statements of Cash Flows (unaudited) (USD $)
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Restated [Member]
Cash Flows from Operating Activities:    
Net Loss $ (4,286,050) $ (1,897,745)
Adjustments to reconcile net loss to net cash provided in operating activities:    
Depreciation Expense 7,186 8,388
Amortization Expense 109,060 102,190
Issuance of Common Stock for Interest 40,000 0
Issuance of Common Stock for Services 167,259 324,714
Accretion of discount on Convertible Debenture 278,577 116,999
Stock Compensation Expense 212,390 192,049
(Gain) Loss on Derivative Valuation 1,051,034 (46,257)
(Gain) Loss on Extinguishment of Debt 217,376 (76,280)
Loss on Conversion of Warrants to Common Stock 308,500 0
Interest expense recognized on debenture conversion 488,572 0
Decrease (increase) in operating assets    
Accounts Receivable 834,936 1,757
Inventory 54,651 (4,850)
Prepaid Expenses & Other Assets 1,597 (125,886)
Increase (decrease) in operating liabilities    
Accounts Payable (136,710) (116,043)
Accrued Salaries 451,294 243,332
Accrued Interest 8,280 41,333
Accrued Interest - Related Party 21,498 44,100
Other Accrued Expenses (297,029) 2,218
Net cash provided/(used) in operating activities (467,579) (1,189,981)
Cash Flows from Investing Activities:    
Investment in Intangible Assets (151,133) (40,048)
Purchase of Fixed Assets (2,825) (1,898)
Net cash provided/(used) by investing activities (153,958) (41,946)
Cash Flows from Financing Activities:    
Sale of Common Stock 0 200,000
Common Stock Subscription Payable 100,000 0
Common Stock Offering Costs (800) 0
Proceeds from Short Term Notes 309,000 0
Proceeds from Long Term Debenture 0 1,000,000
Issuance Costs on Debenture 0 (223,901)
Net cash provided/(used) by financing activities 408,200 976,099
Net increase/(decrease) in cash (213,337) (255,828)
Beginning Cash Balance 447,548 405,341
Ending Cash Balance 234,211 149,513
Supplemental disclosures of cash flow information:    
Cash paid for income taxes 0 0
Cash paid for interest 40,000 4,012
Schedule of non-cash financing and investing activites:    
Related Party Note converted to Common Stock 0 1,745,546
Warrants granted for debenture issuance costs 0 28,929
Discount on long term debenture attributed to Warrants 0 379,688
Accrued Salaries converted to Short Term Notes Payable 221,000 0
Conversion of Debenture to Common Stock 75,000 0
Conversion of Warrants to Common Stock $ 216,871 $ 0