Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash Flows for Operating Activities:
Net (Loss) for the period	$ (10,357,088)	$ (2,367,335)
Adjustments to reconcile net loss to net cash used by operating activities:
Warrants issued for services rendered	338,150	0
Warrants issued for Directors' Fees	21,953	34,935
Finance costs paid in stock and warrants	1,009,802	821,340
Amortization of deferred finance costs,	13,016	12,868
Deferred finance costs	2,930,020	0
Amortization of debt discount,	925,107	477,948
Amortization of intangibles	6,234	726
Depreciation expense	13,203	50,862
Fair value adjustment of Derivative Liability,	3,136,429	(709,638)
(Decrease) in deferred rent	(19,110)	(84,626)
Changes in assets and liabilities:
(Increase) in prepaid expenses	(88,693)	(8,939)
(Increase) in miscellaneous receivable	(118,467)	0
Decrease (Increase) in security deposits	122,917	(845)
Increase (Decrease) in accounts payable	112	214,067
(Decrease) in deferred revenue	(235,000)	0
(Decrease) in customer deposits	(27,837)	0
Increase in accrued liabilities	137,602	142,060
Net Cash (Used) by Operating Activities	(2,191,651)	(1,416,577)
Cash Flows from Investing Activities:
Capital expenditures	0	(3,500)
Purchase of Pending Patents	(331,377)	0
Net Cash (Used) by Investing Activities	(331,377)	(3,500)
Cash Flow from Financing Activities:
Proceeds from loans payable other.	0	123,000
Repayment of Loan Payable, related party	(362)	0
Payment of loan payable, other	(258,591)	0
Payment of Deferred Finance Costs	0	(34,958)
Payments of other borrowings	0	(7,682)
Proceeds from issuance of convertible debentures	2,468,000	732,000
Proceeds from sale of common stock and exercise of warrants	548,000	389,308
Net Cash Provided by Financing Activities	2,757,047	1,201,668
Increase (Decrease) in Cash	234,019	(218,409)
Cash at Beginning of Period	47,147	225,696
Cash at End of Period	281,166	7,287
Cash paid during the period for:
Interest	0	0
Income Taxes	0	0
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issued Convertible Debentures	500,000	432,000
Discounts recorded on Issue of convertibe debentures.	377,088	332,000
Consideration for payment of Obligations to Issue Common Stock.	72,000	0
Obligation to Issue Common Stock to Accrued Liabilities	277,064	0
Convertible Debentures Issued	1,000,000	325,000
Discounts on Issue of convertibe debentures recorded.	1,000,000	500,000
Several three year 1% convertible notes in the aggregate principal amount	0	155,100
Loans Payable - Related Party was transferred to Loans Payable - Other	15,000	0
value of shares issued for the purchase of assets from Essex Angel Capital	1,159,904	0
Discounts on Issue of convertibe debentures recorded in this quarter.	968,000	0
Loans Payable - Other converted in to Convertible debentures	289,592	0
Company established additional Derivative Liabilities in total	4,687,312	0
Company established additional Derivative Liabilities of consisting of unamortized debt discounts	2,177,088	0
Company established additional Derivative Liabilities of consisting of finance costs valued	$ 2,510,224	$ 0