Quarterly report pursuant to sections 13 or 15(d)

Statements of Cash Flows (unaudited)

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Statements of Cash Flows (unaudited) (USD $)
 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Statements Of Cash Flows    
Net Loss $ (1,489,114) $ (1,184,548)
Adjustments to reconcile net loss to net cash provided in operating activities:    
Depreciation Expense 5,021 5,586
Amortization Expense 73,154 70,104
Issuance of Common Stock for Interest 40,000   
Issuance of Common Stock for Services 155,544 324,714
Accretion of discount on Convertible Debenture 162,244 1,581
Stock Compensation Expense 160,267 123,379
Gain on Derivative Valuation (10,757)   
Decrease (increase) in operating assets    
Accounts Receivable 747,409 258,876
Inventory 25,986 119,272
Prepaid Expenses & Other Assets (6,492) (148,772)
Increase (decrease) in operating liabilities    
Accounts Payable (68,795) (460,785)
Accrued Salaries 271,219 299,758
Accrued Interest    1,333
Accrued Interest - Related Party 13,534 38,033
Other Accrued Expenses (165,138) 451,144
Net cash provided/(used) in operating activities (85,918) (100,325)
Cash Flows from Investing Activities:    
Investment in Intangible Assets (172,518) (74,498)
Purchase of Fixed Assets    (1,898)
Net cash provided/(used) by investing activities (172,518) (76,396)
Cash Flows from Financing Activities:    
Sale of Common Stock    190,000
Proceeds from Long Term Debenture    1,000,000
Issuance Costs on Debenture 64,278 (227,111)
Net cash provided/(used) by financing activities 64,278 962,889
Net increase/(decrease) in cash (194,158) 786,168
Beginning Cash Balance 447,548 405,341
Ending Cash Balance 253,390 1,191,509
Supplemental disclosures of cash flow information:    
Cash paid for income taxes      
Cash paid for interest 40,000 1,160
Related Party Note converted to Common Stock    1,745,546
Warrants granted for debenture issuance costs    28,929
Discount on long term debenture attributed to Warrants    $ 379,688