Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENT OF CASH FLOWS

v2.4.1.9
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
 12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Cash Flows for Operating Activities:    
Net Income (Loss) $ 680,811us-gaap_ProfitLoss $ (10,095,878)us-gaap_ProfitLoss
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Stocks and warrants issued for services rendered 139,279fil_StocksAndWarrantsIssuedForServicesRendered1 434,750fil_StocksAndWarrantsIssuedForServicesRendered1
Warrants issued for Directors' Fees 49,600fil_WarrantsIssuedForDirectorsFees 38,226fil_WarrantsIssuedForDirectorsFees
Stocks and warrants issued for financing costs 164,107fil_StocksAndWarrantsIssuedForFinancingCosts 1,226,009fil_StocksAndWarrantsIssuedForFinancingCosts
Amortization of deferred finance costs.. 4,835us-gaap_PaymentsOfFinancingCosts 30,122us-gaap_PaymentsOfFinancingCosts
Financing costs.. 0us-gaap_AmortizationOfFinancingCosts 2,821,630us-gaap_AmortizationOfFinancingCosts
Amortization of bond discount.. 1,801,735fil_AmortizationOfBondDiscount1 1,464,515fil_AmortizationOfBondDiscount1
Amortization of intangibles 0fil_AmortizationOfIntangibles 6,234fil_AmortizationOfIntangibles
Depreciation expense 25,000us-gaap_DepreciationAmortizationAndAccretionNet 19,453us-gaap_DepreciationAmortizationAndAccretionNet
Abandonment of Patent Applications Pending.. 1,391,281fil_AbandonmentOfPatentApplicationsPending1 0fil_AbandonmentOfPatentApplicationsPending1
Fair value adjustment of derivative liability.. (8,418,982)fil_FairValueAdjustmentOfDerivativeLiability 1,674,135fil_FairValueAdjustmentOfDerivativeLiability
Decrease in deferred rent 0fil_DecreaseInDeferredRent (19,110)fil_DecreaseInDeferredRent
Changes in assets and liabilities:    
(Increase) Decrease in prepaid expenses 40,398us-gaap_IncreaseDecreaseInPrepaidExpense (63,421)us-gaap_IncreaseDecreaseInPrepaidExpense
(Increase) Decrease in miscellaneous receivables 118,467us-gaap_LiabilitiesSubjectToCompromisePeriodIncreaseDecrease (118,467)us-gaap_LiabilitiesSubjectToCompromisePeriodIncreaseDecrease
Decrease in security deposits 845us-gaap_IncreaseDecreaseInSecurityDeposits 122,917us-gaap_IncreaseDecreaseInSecurityDeposits
Increase (Decrease) in accounts payable 744,273us-gaap_IncreaseDecreaseInAccountsPayable (455,432)us-gaap_IncreaseDecreaseInAccountsPayable
(Decrease) in customer deposits 0us-gaap_IncreaseDecreaseInCustomerDeposits (27,837)us-gaap_IncreaseDecreaseInCustomerDeposits
(Decrease) in deferred revenue 0us-gaap_IncreaseDecreaseInDeferredRevenue (235,000)us-gaap_IncreaseDecreaseInDeferredRevenue
Increase in accrued liabilities 522,307us-gaap_IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities 190,941us-gaap_IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities
Net Cash (Used) in Operating Activities (2,736,046)us-gaap_NetCashProvidedByUsedInOperatingActivities (2,986,213)us-gaap_NetCashProvidedByUsedInOperatingActivities
Cash Flows from Investing Activities:    
Purchase of Patent Applications Pending 0us-gaap_PaymentsToAcquireIntangibleAssets (331,377)us-gaap_PaymentsToAcquireIntangibleAssets
Net Cash (Used) in Investing Activities 0us-gaap_NetCashProvidedByUsedInInvestingActivities (331,377)us-gaap_NetCashProvidedByUsedInInvestingActivities
Cash Flow from Financing Activities:    
Proceeds from (payment of) loans payable, related parties 141,015us-gaap_ProceedsFromRepaymentsOfRelatedPartyDebt (361)us-gaap_ProceedsFromRepaymentsOfRelatedPartyDebt
Finance charges paid on issuance of 11% convertible debt (1,890)fil_FinanceChargesPaidOnIssuanceOf11ConvertibleDebt 0fil_FinanceChargesPaidOnIssuanceOf11ConvertibleDebt
Proceeds from issuance of convertible debentures 1,369,700us-gaap_ProceedsFromConvertibleDebt 2,904,408us-gaap_ProceedsFromConvertibleDebt
Proceeds from sale of common stock and exercise of warrants 757,500us-gaap_ProceedsFromSaleOfTreasuryStock 859,500us-gaap_ProceedsFromSaleOfTreasuryStock
Net Cash Provided by Financing Activities 2,244,325us-gaap_NetCashProvidedByUsedInFinancingActivities 3,763,547us-gaap_NetCashProvidedByUsedInFinancingActivities
Increase (Decrease) in Cash (491,721)us-gaap_CashPeriodIncreaseDecrease 445,957us-gaap_CashPeriodIncreaseDecrease
Cash at Beginning of Period 493,104us-gaap_CashAndCashEquivalentsAtCarryingValue 47,147us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash at End of Period 1,383us-gaap_CashAndCashEquivalentsAtCarryingValue 493,104us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash paid during the period for:    
Interest 0us-gaap_InterestPaidNet 0us-gaap_InterestPaidNet
Income taxes $ 0us-gaap_IncomeTaxesPaid $ 50us-gaap_IncomeTaxesPaid