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 $)
 3 Months Ended 51 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Cash flows from operating activities      
Net loss $ (1,115,591) $ (1,130,508) $ (14,993,071)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock based compensation 189,366    4,035,500
Stock issued for services 11,000    909,023
Amortization of license fees 1,471 1,471 25,000
Depreciation expense 42,628 131,775 471,269
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       (384,024)
Change in assets and liabilities      
Decrease in accounts receivable 274,464 206,545   
Decrease in inventory 24,085 30,622 (13,908)
Increase in prepaid expenses and other assets (23,062) (58,194) (126,065)
Increase in accounts payable and accrued liabilities 370,574 107,056 1,154,016
Net cash used in operating activities (225,065) (311,233) (4,547,452)
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 105,045    2,675,244
Proceeds from the issuance of common stock, net    213,500 1,986,007
Net cash provided by financing activities 105,045 213,500 6,120,251
Net increase in cash and cash equivalents (120,020) (97,733) 69,347
Cash and cash equivalents - beginning of period 189,367 99,713   
Cash and cash equivalents - end of period 69,347 1,980 69,347
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid during the period for - Interest 2,250 2,275 11,400
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