|
STATEMENTS OF CASH FLOWS (USD $)
|
9 Months Ended |
|
Sep. 30, 2012
|
Sep. 30, 2011
|
| OPERATING ACTIVITIES: |
|
|
| Net loss |
$ (2,165,338) |
$ (1,844,814) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
| Depreciation and amortization |
516,693 |
186,246 |
| Stock based compensation |
80,068 |
73,002 |
| Issuance of stock for services |
223,500 |
672,000 |
| Changes in current assets and liabilities: |
|
|
| Decrease (Increase) in accounts receivable - trade |
115,419 |
(86,826) |
| Decrease in inventory |
|
11,840 |
| Decrease (Increase) in prepaid expenses and other |
222,744 |
(232,749) |
| Decrease in note receivable |
135,577 |
|
| (Decrease) Increase in accounts payable - trade and accrued liabilities |
(290,394) |
326,102 |
| Increase in accrued debenture interest |
107,641 |
|
| Increase in unearned income |
5,571 |
26,285 |
| Net cash (used in) operating activities |
(1,048,519) |
(868,914) |
| INVESTING ACTIVITIES: |
|
|
| Cash received from sale of Illume Mobile |
250,000 |
|
| Software development costs |
(233,390) |
(459,576) |
| Purchase of equipment |
(8,580) |
(25,643) |
| Disposal of equipment |
4,246 |
237 |
| Net cash provided (used in) by investing activities |
12,276 |
(484,982) |
| FINANCING ACTIVITIES: |
|
|
| Net Proceeds from debenture financing |
500,000 |
1,250,000 |
| Common stock issued for debenture conversions |
|
50,000 |
| Reduction of accrued debenture interest |
(233,782) |
|
| Common stock issued for accrued debenture interest |
216,330 |
|
| Proceeds from shareholder loans, including accrued interest |
790,621 |
156,240 |
| Repayment of shareholder loans, including accrued interest |
(115,247) |
(51,062) |
| Shareholder loans converted to debentures |
(320,000) |
|
| Proceeds from sale of common stock |
250,000 |
|
| Repayments of notes payable |
|
(34,176) |
| Deferred offering costs |
|
(8,170) |
| Proceeds from bank line of credit |
|
300,000 |
| Repayment of bank line of credit |
(10,000) |
(100,000) |
| Net cash provided by financing activities |
1,077,922 |
1,562,832 |
| NET INCREASE IN CASH |
41,679 |
208,936 |
| CASH, beginning of period |
273,132 |
187,025 |
| CASH, end of period |
$ 314,811 |
$ 395,961 |