Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOW

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CONSOLIDATED STATEMENTS OF CASH FLOW (USD $)
 9 Months Ended 33 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2011
Cash flows from operating activities:      
Net (loss) from continuing operations $ (1,609,694) $ (177,299) $ (2,112,011)
Net (loss) from discontinued operations (315,306)   (315,306)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock-based compensation (496,044)   559,664
Amortization of license fees 4,413 4,412 16,177
Amortization of beneficial conversion feature of discontinued operations 11,606   11,606
Depreciation expense 2,302   2,347
Changes assets and liabilities:      
(Increase) in Accounts receivable (286,999)   (286,999)
(Increase) in Other assets (111,518)   (111,518)
(Decrease) in other assets attributable to discontinued operations 713   713
Increase in accounts payable and accrued liabilities 850,186 21,784 975,187
Increase in accounts payable attributable to discontinued operations 5,307   5,308
Net cash used in operating activities (952,946) (151,103) (1,254,852)
Cash flows from investing activities:      
Purchase of license     100,000
Purchases of equipment (1,283,546)   (1,285,337)
Net cash used in investing activities (1,283,546)   (1,385,337)
Cash flows from financing activities:      
Cash assumed in reverse merger 11,150   11,150
Payments to related party for advances   (32,515)  
Proceeds received from related party advances 976,655 115,173 1,379,044
Proceeds from note payable 150,000   150,000
Proceeds from the issuance of common stock converted to series B preferred stock 100,000   100,000
Proceeds from the issuance of series C preferred stock 410,000   410,000
Proceeds from advances for subscriptions 592,000   592,000
Proceeds received from the issuance of common stock 1,362 4,451 9,980
Net cash provided by financing activities 2,241,167 152,139 2,652,174
Effect of exchange rate (1,589)   (1,589)
Net increase (decrease) in cash and cash equivalents 3,086 1,036 10,396
Cash and cash equivalents at beginning of period 7,310    
Cash and cash equivalents at end of period 10,396 1,036 10,396
Supplemental cash flow information:      
Cash paid for interest      
Cash paid during the period for taxes      
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS      
Stock issued for services $ 527,294   $ 590,894