Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED BALANCE SHEET

v2.4.0.6
CONDENSED CONSOLIDATED BALANCE SHEET (USD $)
Sep. 30, 2012
Dec. 31, 2011
CURRENT ASSETS:    
Cash $ 7,287 $ 225,696
Deferred Finance Costs 35,812 13,722
Prepaid Expenses 19,351 10,412
Total Current Assets 62,450 249,830
PROPERTY AND EQUIPMENT, NET 36,184 83,546
OTHER ASSETS:    
Definite-life intangible Assets, net 6,475 7,201
Deposits 123,762 122,917
Total Other Assets 130,237 130,118
TOTAL ASSETS 228,871 463,494
CURRENT LIABILITIES:    
Accounts Payable 874,730 660,663
Current portion, long term debt 0 7,682
Customer deposits 27,837 27,837
Loan Payable - Other 123,000 0
Obligation to issue common stock and warrants 331,430 307,664
Convertible Debenture Payable, less Discount of $875 at December 31, 2011 0 84,226
Derivative Liability 823,219 528,566
Deferred Rent 59,987 96,347
Accrued Liabilities 217,411 75,349
Total Current Liabilities 2,457,614 1,788,334
LONG TERM LIABILITIES:    
Convertible Debenture Payable, less Discount of $932,033 and $577,106 at September 30, 2012 and December 31, 2011, respectively 885,567 423,393
Deferred revenue, noncurrent 235,000 235,000
Deferred rent noncurrent 0 48,264
Total Long term Liabilities 1,120,567 706,657
TOTAL LIABILITIES 3,578,181 2,494,991
COMMITMENTS AND CONTINGENCIES      
STOCKHOLDERS DEFICIT:    
Common stock, $.001 par value, 200,000,000 shares authorized at September 30, 2012, 103,150,486 and 100,036,350 issued and outstanding at September 30, 2012 and December 31, 2011 103,151 100,036
Additional Paid-In Capital 28,176,687 27,130,276
Accumulated deficit (31,629,148) (29,261,809)
Total Stockholders Deficit (3,349,310) (2,031,497)
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT $ 228,871 $ 463,494