|
CONDENSED STATEMENTS OF CASH FLOWS (USD $)
|
9 Months Ended |
|
Sep. 30, 2012
|
Sep. 30, 2011
|
| Cash flows from operating activities: |
|
|
| Net income |
$ 199,817 |
$ 1,328,167 |
| Adjustments to reconcile net income to net cash used in operating activities: |
|
|
| Provision for bad debts |
180,000 |
|
| Gain from debt extinguishment |
(95,568) |
(150,562) |
| Interest expense related to warrant amortization |
126,126 |
37,737 |
| Accretion of debt discount on long-term debt |
13,340 |
|
| Stock based compensation |
422,680 |
117,585 |
| Common stock issued in settlement of litigation |
326,650 |
|
| Depreciation and amortization |
5,083 |
|
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable, net |
(1,311,116) |
(2,521,124) |
| Related party receivable |
163,703 |
(140,106) |
| Due to related party |
36,696 |
|
| Prepaid expenses |
(70,475) |
87,375 |
| Accounts payable and accrued liabilities |
(396,124) |
428,702 |
| Net cash used in operating activities |
(399,188) |
(661,664) |
| Cash flows from financing activities: |
|
|
| Proceeds from issuance of common stock |
|
77,000 |
| Proceeds from issuance of notes payable and long-term debt |
1,550,000 |
200,000 |
| Proceeds from related party payable |
261,000 |
525,354 |
| Repayments of related party payable |
(244,500) |
(312,753) |
| Net cash provided by financing activities |
1,566,500 |
489,601 |
| Net increase in cash and cash equivalents |
1,167,312 |
(172,063) |
| Cash and cash equivalents at beginning of period |
54,582 |
177,203 |
| Cash and cash equivalents at end of period |
1,221,894 |
5,140 |
| Supplementary disclosure of non-cash investing activities: |
|
|
| Common stock issued to acquire Gleric Holdings, LLC |
231,200 |
|
| Supplementary disclosure of non-cash financing activities: |
|
|
| Common stock issued in conversion of related party payable |
1,020,200 |
|
| Common stock issued for consulting services |
315,000 |
|
| Cancelation of common stock in settlement of legal dispute |
|
$ 65 |