Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash Flows for Operating Activities:    
Net Income (Loss) $ 3,294,782 $ (5,676,436)
Adjustments to reconcile net income (loss) to net cash used by operating activities:    
Stock and warrants issued for services rendered 13,984 250,640
Warrants issued for Directors' Fees 29,683 13,385
Finance costs paid in stock and warrants   612,969
Amortization of deferred finance costs 4,835  
Deferred finance costs   1,907,234
Amortization of bond discount 817,624 461,095
Amortization of intangibles   6,234
Depreciation expense 12,500 13,203
Fair value adjustment of Derivative Liability (5,957,121) 1,382,376
(Decrease) in deferred rent   (19,110)
Changes in assets and liabilities:    
(Increase) Decrease in prepaid expenses 34,603 (78,627)
(Increase) Decrease in miscellaneous receivable 118,468 (118,468)
Decrease in security deposits 845 122,917
Increase (Decrease) in accounts payable 199,167 (136,139)
(Decrease) in deferred revenue   (235,000)
(Decrease) in customer deposits   (27,837)
Increase in accrued liabilities 207,529 113,383
Net Cash Used by Operating Activities (1,223,104) (1,408,181)
Cash Flows from Investing Activities:    
Capital expenditures   0
Net Cash Used by Investing Activities   0
Cash Flow from Financing Activities:    
Repayment of Loan Payable, related party   (362)
Proceeds of Loan Payable, related party 25,510 31,000
Proceeds from issuance of convertible debentures   1,500,000
Proceeds from sale of common stock and exercise of warrants 735,500 85,000
Net Cash Provided by Financing Activities 761,010 1,615,638
Increase (Decrease) in Cash (462,093) 207,457
Cash at Beginning of Period 493,104 47,147
Cash at End of Period 31,011 254,604
Cash paid during the period for:    
Interest   0
Income Taxes   $ 0