Annual report pursuant to Section 13 and 15(d)

Statements of Cash Flows

v2.4.0.6
Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (9,318,946) $ (3,285,553)
Adjustment to reconcile net loss to net cash used in operating activities:    
Depreciation expense 203 204
Amortization of debt discounts 2,324,720 13,312
Amortization of deferred financing costs 120,000  
Shares issued for services 2,748,471 1,380,912
Options expense 1,046,449  
Gain on extinguishment of debt (140,666) 0
Derivative liabilities recorded as compensation expense 566,275  
Interest expense paid in shares   39,000
Gain on change in fair value of derivative liability (218,487)  
Changes in operating assets and liabilities:    
Prepaid expenses and other current assets (46,124) (16,405)
Accounts payable (154,792) 121,980
Accounts payable - related party (19,011) 319,774
Accrued expenses 176,047 649,286
Cash Used In Operating Activities (2,915,861) (777,490)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from the sale of stock 4,000,000  
Advances from related parties   208,086
Borrowings on related party debt   30,000
Borrowings on related party convertible debt   143,000
Payments on related party debt (379,732)  
Payments on related party convertible debt (158,000)  
Borrowings on convertible debt 2,252,641  
Borrowings on debt 808,000 449,300
Payments on debt (1,040,303) (50,000)
Cash Provided by Financing Activities 5,482,606 780,386
NET CHANGE IN CASH AND CASH EQUIVALENTS 2,566,745 2,896
CASH AND CASH EQUIVALENTS - beginning of period 8,342 5,446
CASH AND CASH EQUIVALENTS - end of period 2,575,087 8,342
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest 63,991 2,764
Cash paid for income taxes 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Derivative liabilities recorded in additional paid-in capital 156,032  
Derivative liabilities recorded as debt discounts 187,880  
Debt discounts due to beneficial conversion features 2,000,000  
Accrued interest converted to debt 104,758  
Common Stock issued in resolution of derivative liabilities 691,700  
Payables converted to debt 90,000  
Related party payables and advances converted to debt 15,000  
Related party payables and advances converted to convertible debt   380,000
Debt issuance costs accrued 120,000  
Common stock issued for debt, liabilities and accrued interest 2,732,454 31,530
Common stock issued for related party debt, liabilities and accrued interest 410,400 1,218,870
Common stock issued with debt $ 81,921 $ 68,231