Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

v2.4.0.8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (9,471,567) $ (2,625,146)
Adjustments to reconcile net loss to net cash used in operating activities:    
(Gain) loss on fair market valuation of derivatives 267,825 (656,000)
Depreciation and amortization 202,854 13,929
Warrants issued with common stock 2,979,953 383,005
Stock issued for interest expense 203,624 55,777
Stock issued for services 397,500 671,924
Equity instruments issued with debt greater than debt carrying amount 2,560,000 1,361,000
Change in accounts receivable reserve (1,391) (5,000)
Changes in operating assets and liabilities:    
Accounts receivable (112,955) (611,519)
Prepaid expenses (120,438)   
Inventory    7,248
Prepaid inventory    51,988
Note receivable 173,754   
Deposits (47,783) (1,672,688)
Accounts payable (592,756) 1,592,314
Net cash used in operations (3,561,380) (1,433,168)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (1,473,954)   
Purchase of intangile assets - domain names (11,500)   
Cash assumed in merger    100
Net cash used in investing activities (1,485,454) 100
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of notes payable 3,721,053 1,378,474
Proceeds from issuance of notes payable to related parties 27,500 17,502
Payment on notes payable (300,000) (100,000)
Payments on notes payable to related parties (130,000) (20,000)
Proceeds from issuance of common stock and warrants and common stock subscribed 4,014,919 310,160
Proceeds from issuance of common stock from the exercise of warrants 293,420   
Short swing profit payment 67,100   
Net cash provided by financing activities 7,693,992 1,586,136
NET CHANGE IN CASH AND CASH EQUIVALENTS 2,647,158 153,068
CASH AND CASH EQUIVALENTS, beginning of period 26,943 16,312
CASH AND CASH EQUIVALENTS, end of period 2,674,101 169,380
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITES    
Cash paid for interest 285,371 6,750
SUPPLEMENTAL DISCLOSURE FOR FINANCING ACTIVITIES    
Warrant expense $ 2,979,953 $ 383,005