Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended 39 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (1,130,508) $ (268,006) $ (11,129,939)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock based compensation       3,487,400
Stock issued for services    20,833 763,023
Amortization of license fees 1,471 1,471 19,118
Depreciation expense 131,775 3,852 148,563
Impaiment of fixed assets 400,000    400,000
Impairment of goodwill       3,555,304
Change in assets and liabilities      
Decrease in accounts receivable 206,545      
Decrease in inventory 30,622      
Increase in prepaid expenses and other assets (58,194)    (132,571)
Increase (decrease) in accounts payable and accrued liabilities 105,978 155,818 961,972
Decrease in accounts payable attributable to discontinued operations 1,078    (146,223)
Net cash used in operating activities (311,233) (86,032) (2,073,353)
CASH FLOWS USED IN INVESTING ACTIVITIES:      
Purchase of license       (100,000)
Cash assumed in reverse merger       11,150
Purchase of equipment    (289,915) (1,406,358)
Net cash used in investing activities    (289,915) (1,495,208)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Net proceeds from related party advances    269,416 951,034
Proceeds from note payable       150,000
Proceeds from the issuance of preferred stock, net       483,500
Proceeds from the issuance of common stock, net 213,500 100,000 1,986,007
Net cash provided by financing activities 213,500 369,416 3,570,541
Net increase in cash and cash equivalents (97,733) (6,531) 1,980
Cash and cash equivalents - beginning of period 99,713 7,310   
Cash and cash equivalents - end of period 1,980 779 1,980
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid during the period for:Interest 2,275    4,962
Cash paid during the period for:Taxes         
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS      
Equipment purchases included in accounts payable    $ 741,072 $ 169,421