Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (1,548,370) $ (189,628)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 3,070 4,244
Warrants issued with common stock 185,630 15,000
Stock issued for interest expense 55,777   
Stock issued for services 309,048   
Equity instruments issued with debt greater than debt carrying amount 718,000   
Change in receivable reserve (5,000)   
Changes in operating assets and liabilities:    
Accounts receivable 31,695 (76,019)
Inventory (2,709) 151,786
Prepaid inventory    (10,175)
Deposits (508,000)   
Accounts payable (50,431) 36,026
Due to officers    (500)
Net cash used in operations (811,290) (69,266)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Net cash used in investing activities      
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of notes payable 928,474   
Proceeds from issuance of notes payable to related parties 17,502 30,000
Payments on notes payable to related parties (5,000) (5,000)
Proceeds from issuance of common stock and common stock subscribed 290,160 50,000
Net cash provided by financing activities 1,231,136 75,000
NET CHANGE IN CASH AND CASH EQUIVALENTS 419,846 5,734
CASH AND CASH EQUIVALENTS, beginning of period 16,312 9,139
CASH AND CASH EQUIVALENTS, end of period 436,158 14,873
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITES    
Cash paid for interest 2,250   
SUPPLEMENTAL DISCLOSURE FOR FINANCING ACTIVITIES    
Warrant expense $ 185,630 $ 15,000