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 $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash Flows from Operating Activities:    
Net Income (Loss) $ 3,962,328 $ (927,104)
Adjustments to reconcile net loss to net cash used by operating activities:    
Stock and warrants issued for services rendered 7,228 0
Stock and warrants issued for Director Fees 15,144 6,037
Stock and warrants issued for Finance Costs 0 28,152
Amortization of bond discount 479,003 174,558
Amortization of deferred finance costs 4,835 0
Amortization of intangibles 0 6,234
Depreciation expense 6,250 13,203
Fair value adjustment of Derivative Liability (5,364,711) 138,749
(Decrease) in deferred rent 0 (19,110)
Changes in assets and liabilities:    
(Increase) in prepaid expenses (17,466) (27,959)
Decrease in security deposits 845 0
Increase (Decrease) in accounts payable 117,225 (23,591)
Increase in accrued liabilities 108,787 74,540
Net Cash (Used) by Operating Activities (680,531) (556,291)
Cash Flows from Investing Activities: 0 0
Cash Flow from Financing Activities:    
Proceeds of loan payable, other 0 35,000
Proceeds from issuance of convertible debentures 0 500,000
Proceeds from issuance stock and exercise of warrants 284,250 0
Net Cash Provided by Financing Activities 284,250 535,000
(Decrease) in Cash (396,281) (21,291)
Cash at Beginning of Period 493,104 47,147
Cash at End of Period 96,823 25,856
Cash paid during the period for:    
Interest 0 0
Income Taxes $ 0 $ 0