|
Condensed Consolidated Statements of Cash Flows (USD $)
|
3 Months Ended |
139 Months Ended |
|
Mar. 31, 2013
|
Mar. 31, 2012
|
Mar. 31, 2013
|
| CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
| Net loss |
$ (406,085) |
$ (334,300) |
$ (15,554,037) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
| Depreciation and amortization |
155 |
3,938 |
266,090 |
| Loss on disposal of property and equipment |
0 |
0 |
20,480 |
| Amortization of loan discount |
28,750 |
41,033 |
1,390,081 |
| Stock-based compensation |
0 |
0 |
589,188 |
| Change in value of derivative liability |
(39,551) |
(9,679) |
(817,205) |
| 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 |
200,000 |
0 |
285,734 |
| 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 |
16,599 |
43,505 |
1,570,926 |
| Accrued officers' salaries |
86,700 |
120,000 |
2,356,101 |
| Interest payable |
50,139 |
50,211 |
1,320,679 |
| Settlement payable, shareholder |
(2,250) |
(2,000) |
(41,750) |
| Net cash used in operating activities |
(65,543) |
(87,292) |
(6,833,379) |
| INVESTING ACTIVITIES |
|
|
|
| Acquisition of property and equipment |
0 |
0 |
(241,571) |
| Net cash used in investing activities |
0 |
0 |
(241,571) |
| FINANCING ACTIVITIES |
|
|
|
| Bank overdraft |
0 |
20,602 |
0 |
| Proceeds from shareholder advances |
0 |
0 |
1,463,477 |
| Repayments of shareholder advances |
0 |
(26,684) |
(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 |
0 |
385,000 |
| Repayments of notes payable, unrelated party |
0 |
0 |
(10,000) |
| Proceeds from note payable, convertible, unrelated-party |
0 |
50,000 |
346,000 |
| Proceeds from notes payable, related-party |
0 |
0 |
494,990 |
| Repayments of notes payable, related-party |
0 |
(2,000) |
(117,410) |
| Proceeds from sale of common stock |
72,750 |
36,500 |
4,856,165 |
| Write-off of payable |
0 |
0 |
35,711 |
| Net cash provided by financing activities |
72,750 |
78,418 |
7,084,009 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
7,207 |
(8,874) |
9,059 |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD |
1,852 |
8,874 |
0 |
| CASH AND CASH EQUIVALENTS - END OF PERIOD |
9,059 |
0 |
9,059 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
| Cash paid for interest |
0 |
0 |
0 |
| Cash paid for taxes |
0 |
0 |
0 |
| NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
| Common stock issued upon conversion of accrued salaries |
0 |
0 |
724,378 |
| Common stock issued in connection with notes payable |
0 |
0 |
25,000 |
| Common stock issued upon conversion of notes payable |
65,874 |
0 |
214,349 |
| Extinguishment of fair value of derivatives |
$ 0 |
$ 0 |
$ 1,578,405 |