Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash Flows from Operating Activities:    
Net Loss $ (2,843,763) $ (4,286,050)
Adjustments to reconcile net loss to net cash provided in operating activities:    
Depreciation Expense 37,774 7,186
Amortization Expense 45,527 109,060
Imputed Interest Expense - Related party 19,611 0
Bad Debt Expense 55,000 0
Accretion of Discount on Convertible Debentures 0 278,577
Issuance of Common Stock for Interest Expense 0 40,000
Issuance of Common Stock for Services 0 167,259
Stock Compensation Expense 0 212,390
Prepaid Consulting Service Expense 280,482 0
(Gain) Loss on Extinguishment of Debt (52,447) 217,376
(Gain) Loss on Derivative Valuation 0 1,051,034
(Gain) Loss on Distribution Contracts 47,229 0
(Gain) Loss on Disposition of Assets 70,905 0
(Gain) Loss on Inventory 174,963 0
Loss on Conversion of Warrants to Common Stock 0 308,500
Interest expense recognized on debenture conversion 0 488,572
Decrease (increase) in operating assets:    
Accounts Receivable 495,522 834,936
Inventory 28,226 54,651
Prepaid Expenses & Other Assets 138,295 1,597
Film and Television Costs, net (156,592) 0
Increase (decrease) in operating liabilities:    
Accounts Payable (448,708) (136,710)
Accrued Salaries 59,800 451,294
Accrued Interest 0 8,280
Accrued Interest - Related Party 0 21,498
Deferred Revenue and Advances 432,648 (68,596)
Other Accrued Expenses (9,392) (228,433)
Net cash used in operating activities (1,624,920) (467,579)
Cash Flows from Investing Activities:    
Investment in Capitalized Product Development (16,330) 0
Investment in Intangible Assets (70,000) (151,133)
Investment in Fixed Assets (3,151) (2,825)
Net cash used in investing activities (89,481) (153,958)
Cash Flows from Financing Activities:    
Sale of Preferred Stock 6,000,000 0
Sale of Common Stock 360,000 0
Proceeds from Services Advance 750,000 0
Repayment of Services Advance (10,117) 0
Payments of Related Party Notes (105,017) 0
Debt Issuance Costs (15,000) 0
Common Stock Offering Costs (4,884) (800)
Preferred Strock Offering Costs (620,085) 0
Common Stock Subscription Payable 0 100,000
Proceeds of Short Term Notes 0 309,000
Net cash provided by financing activities 6,354,897 408,200
Net increase in Cash and Cash Equivalents 4,640,496 (213,337)
Beginning Cash and Cash Equivalents 527,110 447,548
Ending Cash and Cash Equivalents 5,167,606 234,211
Supplemental disclosures of cash flow information:    
Cash paid for income taxes 0 0
Cash paid for interest 2,230 40,000
Schedule of non-cash financing and investing activites:    
Common Stock issued as Settlement for Accounts Payable 32,572 0
Common Stock issued for Prepaid Services 113,998 0
Accrued Salaries converted to Short Term Notes Payable 0 221,000
Conversion of Debenture to Common Stock 0 75,000
Conversion of Warrants to Common Stock $ 0 $ 216,871