Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 v2.3.0.11
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
 6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Net Income (Loss) $ (780,458) $ (5,518,703)
Stock and warrants issued for services rendered 33,584 1,450,249
Finance costs paid in warrants, related party 0 405,925
Amortization of prepaid consulting fees 0 73,325
Amortization of deferred finance costs 22,365 0
Amortization of bond discounts 63,830 99,579
Amortization of intangibles 484 483
Vendor settlement 0 (4,117)
Depreciation expense 15,097 11,661
Fair value adjustment of Derivative Liability 0 2,223,991
Increase (decrease)in deferred rent (18,598) 9,591
(Increase) in inventories (23,413) (11,800)
(Increase) in prepaid expenses (7,704) (12,595)
(Increase) in security deposits (635) (3,815)
Increase (decrease) in accounts payable 163,581 (40,836)
Increase in customer deposits 15,155 0
Increase (decrease) in payroll and payroll taxes 22,447 (145,586)
Increase in obligation to issue common stock 0 477,555
(Decrease) in sales tax payable (1,275) 0
(Decrease) in deferred revenue (7,500) 0
(Decrease) Increase in accrued liabilities (12,967) (1,139)
Net Cash (Used) by Operating Activities (516,007) (986,232)
Capital expenditures (4,720) (2,152)
Net Cash (Used) by Investing Activities (4,720) (2,152)
Proceed of Loan Payable, related party 31,959 0
Repayment of Loan Payable, related party (14,000) 0
Proceeds from other borrowings 13,500 0
Repayment of bank overdraft 0 (9,517)
Repayment of Loans Payable, Other 0 (22,005)
Payments of other borrowings (3,038) (3,962)
Proceeds from issuance of convertible debentures 114,500 0
Proceeds from sale of common stock and exercise of warrants. 372,500 1,070,229
Net Cash Provided by Financing Activities 515,421 1,034,745
Increase (Decrease) in Cash (5,306) 46,361
Cash at Beginning of Period 15,603 0
Cash at End of Period 10,297 46,361
Interest 3,780 3,220
Income Taxes $ 50 $ 0