Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED BALANCE SHEET

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CONDENSED CONSOLIDATED BALANCE SHEET (USD $)
Jun. 30, 2012
Dec. 31, 2011
CURRENT ASSETS:    
Cash $ 95,553 $ 225,696
Deferred Finance Costs 40,111 13,722
Prepaid Expenses 37,689 10,412
Total Current Assets 173,353 249,830
PROPERTY AND EQUIPMENT, NET 52,480 83,546
OTHER ASSETS:    
Definite-life intangible Assets, net 6,717 7,201
Deposits 123,762 122,917
Total Other Assets 130,480 130,118
TOTAL ASSETS 356,313 463,494
CURRENT LIABILITIES:    
Accounts Payable 723,001 660,663
Current portion, long term debt 0 7,682
Customer deposits 27,837 27,837
Loan Payable - Other 57,000 0
Obligation to issue common stock and warrants 329,339 307,664
Convertible Debenture Payable, less Discount of $875 at December 31, 2011 0 84,226
Derivative Liability 1,153,542 528,566
Deferred Rent 68,694 96,347
Accrued Liabilities 172,722 75,349
Total Current Liabilities 2,532,135 1,788,334
LONG TERM LIABILITIES:    
Convertible Debenture Payable, less Discount of $1,123,640 and $577,106 at June 30, 2012 and December 31, 2011, respectively 718,960 423,393
Deferred revenue, noncurrent 235,000 235,000
Deferred rent. 12,265 48,264
Total Long term Liabilities 966,225 706,657
TOTAL LIABILITIES 3,498,360 2,494,991
COMMITMENTS AND CONTINGENCIES      
STOCKHOLDERS DEFICIT:    
Common stock, $.001 par value, 150,000,000 shares authorized 100,436,350 and 100,036,350 issued and outstanding at June 30, 2012 and December 31, 2011 100,436 100,036
Additional Paid-In Capital 27,826,600 27,130,276
Accumulated deficit (31,069,083) (29,261,809)
Total Stockholders Deficit (3,142,047) (2,031,497)
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT $ 356,313 $ 463,494