Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements Of Cash Flows (Unaudited)

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Condensed Consolidated Statements Of Cash Flows (Unaudited) (USD $)
 6 Months Ended 54 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Cash flows from operating activities      
Net loss $ (2,119,584) $ (1,941,563) $ (15,997,064)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock based compensation 398,733    4,244,867
Stock issued for services 67,250    965,273
Amortization of license fees 2,941 2,941 26,470
Depreciation expense 85,256 227,157 513,897
Loss on disposal of fixed assets       19,504
Impaiment of fixed assets    400,000 800,000
Impairment of goodwill       3,555,304
Gain on forgiveness of liabilities (80,656)    (464,680)
Change in assets and liabilities      
Decrease in accounts receivable 12,600 206,545 (261,864)
Decrease in inventory 37,993 30,622   
Increase in prepaid expenses and other assets (103,827) (120,696) (206,830)
Increase in accounts payable and accrued liabilities 1,060,016 (175,087) 1,843,458
Increase in deferred revenue 37,060    37,060
Net cash used in operating activities (602,218) (1,370,081) (4,924,605)
Cash flows used in investing activities      
Purchase of license       (100,000)
Cash assumed in reverse merger       11,150
Purchase of equipment       (1,414,602)
Net cash used in investing activities       (1,503,452)
Cash flows from financing activities      
Payment of deferred financing fees       (125,534)
Net proceeds from related party advances       951,034
Proceeds from note payable       150,000
Proceeds from the issuance of preferred stock, net       483,500
Proceeds from issuance of convertible promissory notes 510,045 1,378,459 3,080,244
Proceeds from the issuance of common stock, net    213,500 1,986,007
Net cash provided by financing activities 510,045 1,591,959 6,525,251
Net increase in cash and cash equivalents (92,173) 221,878 97,194
Cash and cash equivalents - beginning of period 189,367 99,713   
Cash and cash equivalents - end of period 97,194 321,591 97,194
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid during the period for - Interest 4,525 4,550 13,675
Cash paid during the period for - Taxes         
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS      
Equipment purchases included in accounts payable       112,000
Conversion of interest to notes payable 134,975    134,975
Conversion of advances payable to notes payable $ 1,036,195    $ 1,036,195