Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements Of Cash Flows (Unaudited)

Condensed Consolidated Statements Of Cash Flows (Unaudited) (USD $)	9 Months Ended		57 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Cash flows from operating activities
Net loss	$ (2,861,602)	$ (3,104,966)	$ (16,739,082)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	620,602	314,367	4,466,736
Stock issued for services	108,500		1,006,523
Amortization of license fees	4,412	4,412	27,941
Amortization of discount on notes payable	17,193		17,193
Amortization of deferred financing fees	63,491		63,491
Depreciation expense	127,884	319,383	556,525
Loss on disposal of fixed assets		19,504	19,504
Impaiment of fixed assets		400,000	800,000
Impairment of goodwill			3,555,304
Gain on forgiveness of liabilities	(80,656)		(464,680)
Change in assets and liabilities
(Increase) decrease in accounts receivable	(71,937)	92,094	(346,401)
Decrease in inventory	37,993	30,622
Increase in prepaid expenses and other assets	(68,473)	(109,683)	(171,476)
Increase in accounts payable and accrued liabilities	1,021,772	350,604	1,805,214
Net cash used in operating activities	(1,080,821)	(1,683,663)	(5,403,208)
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 debt issuance costs	(286,703)		(412,237)
Net proceeds from related party advances			951,034
Payment on note payable	(150,000)
Proceeds from the issuance of preferred stock, net			483,500
Proceeds from the issuance of convertible promissory notes and warrants	1,612,545	1,378,459	4,182,744
Proceeds from the issuance of common stock, net		213,500	1,986,007
Net cash provided by financing activities	1,175,842	1,591,959	7,191,048
Net increase in cash and cash equivalents	95,021	(91,704)	284,388
Cash and cash equivalents - beginning of period	189,367	99,713
Cash and cash equivalents - end of period	284,388	8,009	284,388
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for - Interest	9,250	6,850	18,400
Cash paid during the period for - Taxes	11,799	5,773	18,547
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS
Equipment purchases included in accounts payable			112,000
Conversion of interest to notes payable	305,496		305,496
Conversion of advances payable to convertible notes payable	1,036,195		1,036,195
Conversion of convertible notes payable to equity	$ 866,211		$ 866,211