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, 2015
Jun. 30, 2014
Cash Flows for Operating Activities:    
Net Income (Loss) $ (3,296,862) $ 3,294,782
Adjustments to reconcile net income (loss) to net cash used by operating activities:    
Stock and warrants issued for services rendered - related party 7,380 13,984
Stock and warrants issued for services rendered 315,305 0
Warrants issued for Directors' Fees 9,912 29,683
Finance costs paid in stock and warrants - related party 384,111 0
Amortization of deferred finance costs 0 4,835
Amortization of bond discount 964,969 817,624
Depreciation expense 12,500 12,500
Fair value adjustment of Derivative Liability 0 (5,957,121)
Changes in assets and liabilities:    
(Increase) Decrease in prepaid expenses (15,283) 34,603
Decrease in miscellaneous receivable 0 118,468
Decrease in security deposits 0 845
Increase (decrease) in accounts payable (38,661) 199,165
Increase in accrued liabilities 402,342 207,529
Net Cash (Used) by Operating Activities (1,254,287) (1,223,103)
Cash Flows from Investing Activities:    
Capital expenditures 0 0
Net Cash Used by Investing Activities 0 0
Cash Flow from Financing Activities:    
Repayment of Loan Payable, related party 6,344 0
Proceeds of Loan Payable, related party 159,235 25,510
Proceeds from issuance of 11% convertible debentures 1,067,500 0
Proceeds from sale of common stock and exercise of warrants 48,500 735,500
Net Cash Provided by Financing Activities 1,268,891 761,010
Increase (Decrease) in Cash 14,604 (462,093)
Cash at Beginning of Period 1,383 493,104
Cash at End of Period 15,987 31,011
Cash paid during the period for:    
Interest 0 0
Income Taxes $ 0 $ 0