|
Consolidated Statement of Cash Flows (USD $)
|
12 Months Ended |
|
Dec. 31, 2013
|
Dec. 31, 2012
|
| Cash flows from operating activities: |
|
|
| Net loss |
$ (2,444,491) |
$ (2,926,210) |
| Adjustments to reconcile net loss to cash used in operating activities: |
|
|
| Amortization of intangible assets |
127,316 |
104,344 |
| Depreciation of fixed assets |
248,877 |
247,156 |
| Inventory provision |
35,000 |
|
| Share based compensation |
450,447 |
297,004 |
| Change in accrued interest: Related Party |
131,401 |
87,268 |
| Change in accrued interest: Other |
59,745 |
50,877 |
| Changes in assets and liabilities: |
|
|
| Accounts receivable |
(67,868) |
169,729 |
| Inventory |
48,651 |
(106,396) |
| Prepaid expenses |
60,256 |
256,095 |
| Security deposit |
|
3,100 |
| Accounts payable |
65,820 |
11,477 |
| Accrued liabilities |
574,757 |
431,700 |
| Other current liabilities |
(20,054) |
2,926 |
| Cash used in operating activities |
(730,143) |
(1,370,930) |
| Cash flows used in investing activities: |
|
|
| Purchase of fixed assets |
(128,054) |
(28,177) |
| Purchase of website |
|
|
| Acquisition of subsidiary, net of cash acquired |
(163,201) |
(153,641) |
| Acquisition of patents |
(66,752) |
(33,333) |
| Cash used in investing activities |
(358,007) |
(215,151) |
| Cash flows from financing activities: |
|
|
| Net proceeds from issuance of Common stock |
332,832 |
170 |
| Purchase of Treasury Stock |
|
(1,033) |
| Net proceeds from issuance of Notes Payable: Related Party |
640,744 |
416,450 |
| Net proceeds from issuance of Notes Payable: Other |
187,043 |
194,144 |
| Repayment of Notes Payable: Other |
(71,548) |
(51,193) |
| Cash provided by (used) financing activities |
1,089,071 |
728,368 |
| Effect of exchange rate changes on cash |
(29,439) |
(33,307) |
| Net decrease in cash |
(28,518) |
(891,020) |
| Cash at beginning of year |
59,821 |
950,841 |
| Cash at end of year |
31,303 |
59,821 |
| Supplemental Disclosures of Cash Flow information: |
|
|
| Interest paid: |
156 |
207 |
| Taxes paid |
|
|
| Non-Cash Transactions: |
|
|
| Common Stock issued on conversion of Preferred C Shares |
1,157,500 |
1,175,000 |
| Acquisition of newly acquired subsidiary, net of cash |
|
|
| Trademarks and Tradenames |
|
121,157 |
| Patents |
|
180,183 |
| Internally Developed Software |
|
363,472 |
| Other Net Assets |
|
(758) |
| Negative Goodwill on Acquisition |
|
(66,394) |
| Total assets acquired |
|
597,660 |
| Warrants, options and common stock issued for acquisition of subsidiary |
|
(287,000) |
| Deferred consideration payable |
161,530 |
(161,530) |
| Foreign exchange difference on deferred consideration |
1,671 |
4,511 |
| Acquisition of subsidiary, net of cash acquired, Net |
$ 163,201 |
$ 153,641 |