Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements Of Cash Flows

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Consolidated Statements Of Cash Flows (USD $)
 3 Months Ended 63 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
Cash flows from operating activities      
Net loss $ (3,402,266) $ (1,115,591) $ (22,133,386)
Adjustments to reconcile net loss to net cash used in operating activities:      
Stock based compensation 2,188,675 189,366 6,890,065
Stock issued for services 52,500 11,000 1,059,023
Stock to be issued for license agreement       825,000
Amortization of license fees 1,471 1,471 30,882
Amortization of discount of notes payable 69,088    210,577
Amortization of debt issuance costs 65,021    128,143
Depreciation and amortization expense 42,036 42,628 641,189
Loss on disposal of fixed assets       19,504
Impaiment of fixed assets       800,000
Impairment of goodwill       3,555,304
Gain on forgiveness of liabilities       (360,656)
Gain on forgiveness of liabilities of discontinued operations       (104,024)
Change in assets and liabilities      
Increase in accounts receivable (479,541) 274,464 (863,400)
Decrease (increase) in inventory (940,817) 24,085 (940,817)
Decrease (increase) in prepaid expenses and other assets 5,040 (23,062) (79,755)
Increase in accounts payable and accrued liabilities 1,078,040 370,574 3,132,682
Increase in deferred revenue 1,075,200    1,075,200
Net cash used in operating activities (245,553) (225,065) (6,114,469)
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       (521,312)
Net proceeds from related party advances       951,034
Payment on note payable         
Proceeds from the issuance of preferred stock, net       483,500
Proceeds from the issuance of convertible promissory notes and related warrants    105,045 4,982,744
Proceeds from the issuance of common stock, net       1,986,007
Proceeds from the issuance of common stock upon warrant exercise 7,813    7,813
Net cash provided by financing activities 7,813 105,045 7,889,786
Net increase in cash and cash equivalents (237,740) (120,020) 271,865
Cash and cash equivalents - beginning of period 509,605 189,367  
Cash and cash equivalents - end of period 271,865 69,347 271,865
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid during the period for - Interest 3,750 2,250 28,670
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS      
Equipment purchases included in accounts payable 112,000 112,000 112,000
Accrued sales credits included in customer acquisition costs 970,500    970,500
Conversion of advances payable to debt       1,036,195
Conversion of debt and accrued interest to equity 167,057 134,975 1,033,268
Conversion of accrued interest to debt $ 220,967    $ 526,463