Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF OPERATIONS

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
 12 Months Ended 48 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Consolidated Statements Of Operations      
Revenues $ 788,072 $ 458,080 $ 1,560,177
Costs and expenses:      
Cost of goods sold 233,120 443,925 677,045
Operating expenses 263,143 255,026 760,244
License maintenance fees 200,000 150,000 500,000
Marketing and development 413,816 764,046 1,303,696
Selling, general and administrative expenses 1,655,114 3,878,087 5,689,408
Depreciation and amortization 417,735 23,250 417,735
Professional fees 782,121 805,852 1,753,447
Impairment of fixed assets 800,000    800,000
Impairment of goodwill    3,555,304 3,555,304
Total costs and expenses 4,765,049 9,875,490 15,456,879
Operating loss (3,976,977) (9,417,410) (13,896,702)
Other income (expense)      
Interest expense (261,534) (54,257) (315,791)
Loss on disposal of fixed assets (19,504)    (19,504)
Gain on forgiveness of liabilities 280,000    280,000
Total other income (expense) (1,038) (54,257) (55,295)
Net loss from continuing operations $ (3,978,015) $ (9,471,667) $ (13,951,997)
Net gain (loss) from discontinued operations $ 99,966 $ (25,449) $ 74,517
Net Loss $ (3,878,049) $ (9,497,116) $ (13,877,480)
Net loss per common share - basic and diluted:      
Continuing operations $ (0.12) $ (0.32)  
Discontined operations        
Total $ (0.12) $ (0.32)  
Weighted average common shares outstanding 33,136,492 29,331,788