Quarterly report pursuant to Section 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
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,896,220) $ (6,002,922)
Adjustment to reconcile net loss to net cash used in operating activities:    
Depreciation expense 102 102
Amortization of debt discounts 66,281 2,039,006
Amortization of deferred financing costs 0 102,857
Shares issued for services 708,550 1,668,471
Option Expense 665,533 0
Derivative liabilities recorded as compensation expense 0 566,275
Gain on extinguishment of debt 0 (130,639)
Gain on change in fair value of derivative liabilities 0 (218,487)
Changes in operating assets and liabilities:    
Prepaid expenses and other current assets 60,697 (10,800)
Accounts payable 167,209 115,569
Accounts payable - related party 12,500 169,816
Accrued expenses 127,744 (59,205)
Net Cash Used in Operating Activities (1,087,604) (1,759,957)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Cash paid for construction in progress (2,016,800) 0
Net Cash Used in Investing Activities (2,016,800) 0
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from the sale of common stock 400,000 0
Borrowings on debt 0 708,000
Borrowings on convertible debt 0 2,252,641
Payments on debt 0 (655,303)
Payments on convertible debt 0 (25,000)
Payments on related party debt 129,405 (522,732)
Net Cash Provided by Financing Activities 529,405 1,757,606
NET CHANGE IN CASH AND CASH EQUIVALENTS (2,574,999) (2,351)
CASH AND CASH EQUIVALENTS - beginning of period 2,575,087 8,342
CASH AND CASH EQUIVALENTS - end of period 88 5,991
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest 0 21,904
Cash paid for income taxes 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Derivative liabilities recorded in additional paid-in capital 0 156,032
Derivative liabilities recorded as debt discounts 0 187,880
Common stock issued with debt 66,281 81,921
Deferred financing costs accrued 0 120,000
Accrued interest converted to debt 0 94,758
Common stock issued for debt, liabilities and accrued interest 0 667,399
Common stock issued for related party debt, liabilities and accrued interest 0 382,499
Common stock issued in resolution of derivative liabilities 0 691,700
Debt discounts due to beneficial conversion features $ 0 $ 2,000,000