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 $)
 9 Months Ended 33 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2011
Cash flows from operating activities      
Net loss $ (5,236,963) $ (240,899) $ (5,739,278)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock issued for services 233,630 63,600 297,230
Amortization of license fees 4,413 4,412 16,177
Depreciation expense 11,556    11,601
Impairment of goodwill 3,555,304    3,555,304
Change in assets and liabilities      
Increase in accounts receivable (286,999)    (286,999)
Increase in prepaid expenses and other assets (140,892)    (140,892)
Increase in accounts payable and accrued liabilities 790,612 21,784 915,612
Increase in accounts payable attributable to discontinued operations 7,092    7,092
Net cash used in operating activities (1,062,247) (151,103) (1,364,153)
Cash flows used in investing activities      
Purchase of license       (100,000)
Cash assumed in reverse merger 11,150    11,150
Purchase of equipment (1,154,772)    (1,156,563)
Net cash used in investing activities (1,143,622)    (1,245,413)
Cash flows from financing activities      
Net proceeds from related party advances 926,655 147,688 1,329,044
Proceeds from note payable 150,000    150,000
Proceeds from issuance of common stock converted to Series B preferred stock 150,000    150,000
Proceeds from the issuance of series C preferred stock, net 386,000    386,000
Proceeds from advances for subscriptions 592,000    592,000
Proceeds from the issuance of common stock 1,362 4,451 9,980
Net cash provided by financing activities 2,206,017 152,139 2,617,024
Net increase in cash and cash equivalents 148 1,036 7,458
Cash and cash equivalents - beginning of period 7,310      
Cash and cash equivalents - end of period 7,458 1,036 7,458
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid during the period for - Interest         
Cash paid during the period for - Taxes         
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS      
Stock issued for services 233,630 63,600 297,230