|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
|
6 Months Ended |
52 Months Ended |
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
| Net Loss |
$ (641,592) |
$ (163,696) |
$ (2,740,499) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
| Shares issued for services |
192,000 |
12,500 |
242,000 |
| Shares issued for employment agreement |
74,500 |
40,000 |
278,500 |
| Shares issued for prepaid stock compensation |
265,000 |
|
925,625 |
| Warrants issued for services |
|
|
308,176 |
| Write-off of inventory deposit |
|
|
21,000 |
| Non-cash financing cost |
|
21,781 |
22,056 |
| Amortization of deferred financing cost |
1,980 |
1,980 |
6,600 |
| Amortization of debt discount |
900 |
900 |
3,000 |
| Changes in operating assets and liabilities: |
|
|
|
| (Increase) in prepaid expenses |
(5,437) |
|
(12,600) |
| Decrease in other receivables |
|
|
(14,000) |
| (Increase) in security deposits |
|
(1,500) |
(1,500) |
| Increase (decrease) in accounts payable |
(35,626) |
|
115,055 |
| Increase in accounts payable - related party |
|
2,341 |
343 |
| Increase in accrued salaries - related party |
11,000 |
9,500 |
37,521 |
| Increase in accrued payroll taxes |
16,409 |
|
19,469 |
| Increase in deferred revenue |
|
|
14,235 |
| Increase in accrued interest payable |
109 |
|
510 |
| Increase in accrued interest payable - related party |
11,659 |
15,054 |
14,542 |
| Net cash used in operating activities |
(109,098) |
(61,140) |
(759,967) |
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
| Purchase trademarks |
|
|
(550) |
| Payments for due from related party |
|
|
(44,372) |
| Repayments from due from related party |
|
|
40,000 |
| Net cash used in investing activities |
|
|
(4,922) |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
| Bank overdraft |
|
1,142 |
|
| Proceeds from notes payable - related party |
200 |
850 |
14,122 |
| Repayments of notes payable - related party |
|
(1,350) |
(1,550) |
| Proceeds from line of credit - related party |
8,500 |
30,450 |
67,270 |
| Repayments of line of credit - related party |
|
|
(6,889) |
| Proceeds from notes payable |
|
30,000 |
41,760 |
| Repayments for notes payable |
|
|
(2,750) |
| Proceeds from sale of common stock, net of offering costs |
100,000 |
|
646,282 |
| Donated capital |
|
|
7,110 |
| Net cash provided by financing activities |
108,700 |
61,092 |
765,355 |
| NET CHANGE IN CASH |
(398) |
(48) |
466 |
| CASH AT BEGINNING OF YEAR |
864 |
48 |
|
| CASH AT END OF PERIOD |
466 |
|
466 |
| SUPPLEMENTAL INFORMATION: |
|
|
|
| Interest paid |
10,000 |
|
|
| Income taxes paid |
|
|
|
| Non-cash investing and financing activities: |
|
|
|
| Reclass accounts payble related party to accounts payable |
|
|
343 |
| Reclass notes payable related party to notes payable |
|
|
11,760 |
| Shares issued as settlement of accounts payable |
|
15,718 |
115,718 |
| Shares issued for prepaid stock compensation |
|
300,000 |
369,375 |
| Warrants issued for services |
|
|
308,176 |
| Deemed distribution to majority shareholder |
|
$ (500,000) |
$ (516,563) |