|
Consolidated Statements of Cash Flows (USD $)
|
12 Months Ended |
136 Months Ended |
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2012
|
| CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
| Net income (loss) |
$ 596,245 |
$ (2,834,811) |
$ (15,147,952) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|
|
|
| Depreciation and amortization |
15,752 |
11,571 |
265,935 |
| Loss on disposal/writedown of assets |
19,076 |
0 |
20,480 |
| Amortization of loan discount |
253,821 |
714,804 |
1,361,337 |
| Stock-based compensation |
139,272 |
22,826 |
589,188 |
| Change in value of derivative liability |
(1,936,878) |
839,167 |
(777,654) |
| Issuance of common stock for loan costs |
0 |
0 |
110,000 |
| Issuance of warrants for services |
0 |
0 |
254,800 |
| Issuance of warrants as loan costs |
0 |
0 |
85,734 |
| Issuance of common stock for services |
0 |
0 |
1,441,222 |
| Gain on settlement of accounts payable |
0 |
0 |
(23,435) |
| (Increase) decrease in: |
|
|
|
| Advances to Employees |
0 |
0 |
(1,659) |
| Deposits |
0 |
0 |
(600) |
| Increase (decrease) in: |
|
|
|
| Accounts payable and accrued expenses |
13,107 |
258,528 |
1,554,327 |
| Accrued officers' salaries |
404,401 |
535,000 |
2,269,401 |
| Interest payable |
241,382 |
179,697 |
1,270,540 |
| Settlement payable, shareholder |
(2,000) |
(27,500) |
(39,500) |
| Net cash used in operating activities |
(255,822) |
(300,718) |
(6,767,836) |
| INVESTING ACTIVITIES |
|
|
|
| Acquisition of property and equipment |
0 |
(43,000) |
(241,571) |
| Net cash used in investing activities |
0 |
(43,000) |
(241,571) |
| FINANCING ACTIVITIES |
|
|
|
| Proceeds from shareholder advances |
0 |
1,350 |
1,463,477 |
| Repayments of shareholder advances |
0 |
(140,080) |
(2,255,051) |
| Proceeds from ICE advance |
0 |
0 |
50,000 |
| Proceeds from note payable-Legacy Investors |
0 |
0 |
451,428 |
| Proceeds from note payable-Maricopa Equity Management |
0 |
0 |
100,000 |
| Proceeds from convertible notes payable, related-party |
0 |
0 |
1,283,699 |
| Proceeds from note payable, unrelated party |
0 |
335,000 |
385,000 |
| Repayments of notes payable, unrelated party |
0 |
(10,000) |
(10,000) |
| Proceeds from note payable, convertible, unrelated-party |
96,000 |
0 |
346,000 |
| Proceeds from notes payable, related-party |
0 |
175,000 |
494,990 |
| Repayments of notes payable, related-party |
(10,500) |
(67,500) |
(117,410) |
| Proceeds from sale of common stock |
163,300 |
57,000 |
4,783,415 |
| Write-off of payable |
0 |
0 |
35,711 |
| Net cash provided by financing activities |
248,800 |
350,770 |
7,011,259 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(7,022) |
7,052 |
1,852 |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD |
8,874 |
1,822 |
0 |
| CASH AND CASH EQUIVALENTS - END OF PERIOD |
1,852 |
8,874 |
1,852 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
| Cash paid for interest |
0 |
4,778 |
0 |
| Cash paid for taxes |
0 |
0 |
0 |
| NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
| Common stock issued upon conversion of accrued salaries |
724,378 |
0 |
724,378 |
| Common stock issued in connection with notes payable |
25,000 |
0 |
25,000 |
| Common stock issued upon conversion of notes payable |
148,475 |
0 |
148,475 |
| Extinguishment of fair value of derivatives |
$ 1,578,405 |
$ 0 |
$ 1,578,405 |