Annual report pursuant to section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash Flows from Operating Activities:    
Net Loss $ (7,216,031) $ (2,067,609)
Adjustments to reconcile net loss to net cash provided in operating activities:    
Depreciation Expense 13,730 11,056
Amortization Expense 146,924 138,767
Accretion of Discount on Convertible Debentures and Interest Expense Related to Debenture Conversion 0 163,825
Accretion of Discount on Bridge Notes and Convertible Debentures 1,294,350 0
Issuance of Common Stock for Interest Expense 51,859 0
Issuance of Common Stock for Services 167,260 324,714
Issuance of Common Stock on Bonuses to Officers and Directors 222,500 0
Stock Compensation Expense 316,685 264,122
(Gain) Loss on Settlement or Extinguishment of Debt 614,073 (76,280)
(Gain) Loss on Derivative Valuation 1,886,943 (200,322)
(Gain) Loss on Exchange of Warrants 312,144 0
(Gain) Loss on Distribution Contracts (4,997) 0
(Gain) Loss on Disposition of Assets 251,192 0
(Gain) Loss on Discontinued Operations 101,219 0
Decrease (increase) in operating assets    
Accounts Receivable 279,804 (63,194)
Inventory 101,721 14,710
Prepaid Expenses & Other Assets 36,716 28,503
Other Receivables 466,762 0
Increase (decrease) in operating liabilities    
Accounts Payable (354,498) 38,917
Accrued Salaries 196,318 322,564
Accrued Interest 11,135 26,667
Accrued Interest - Related Party 0 50,259
Other Accrued Expenses (16,126) 87,978
Net cash (used) in operating activities (1,120,317) (935,323)
Cash Flows from Investing Activities:    
Investment in Intangible Assets (67,461) (57,739)
Purchase of Fixed Assets (2,825) (1,898)
Merger with A Squared Entertainment 283,199 0
Net cash provided (used) by investing activities 212,913 (59,637)
Cash Flows from Financing Activities:    
Sale of Common Stock, net of offering costs 968,537 200,000
Costs for Warrant Exchange (15,264) 0
Proceeds from Debenture 0 1,000,000
Issuance Costs on Debenture (275,000) (162,833)
Proceeds from Bridge Notes 309,000 0
Payments of Related Party Notes (307) 0
Net cash provided by financing activities 986,966 1,037,167
Net increase in Cash and Cash Equivalents 79,562 42,207
Beginning Cash and Cash Equivalents 447,548 405,341
Ending Cash and Cash Equivalents 527,110 447,548
Supplemental disclosures of cash flow information:    
Cash paid for income taxes 0 0
Cash paid for interest 0 4,012
Schedule of non-cash financing and investing activites:    
Common Stock issued for Merger, net of cash 10,119,439 0
Conversion of Debentures and Accrued Interest to Common Stock 1,201,474 0
Conversion of Warrants to Common Stock 312,144 0
Warrants granted for Debenture Issuance Costs 0 28,929
Discount on Debentures attributed to Warrants 0 379,688
Derivative Valuation on Debentures 0 269,284
Conversion of Short Term Bridge Notes and Accrued Interest to Common Stock 543,719 0
Conversion of Related Party Notes and Accrued Interest to Common Stock 472,360 1,745,546
Conversion of Accrued Salaries to Common Stock 612,443 0
Accrued Salaries converted to Short Term Note Payable 221,000 0
Common Stock issued as Settlement for Accounts Payable 50,100 0
Common Stock issued for Pre-Paid Services 333,215 0
Common Stock issued for Issuance Costs 15,264 0
Common Stock issued for Derivative Liabilities 3,107,608 0
Common Stock issued for Debt Discount $ 342,500 $ 0