Annual report pursuant to Section 13 and 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
NET LOSS $ (885,807) $ (408,967)
Depreciation and amortization 1,988 2,191
Amortization of debt discount 26,544  
Provision for doubtful accounts 380,030  
Non Cash Interests 20,770  
Stock Based Compensation 259,148  
Common stock issued in settlement of interest 11,820  
Contributed Capital   19,414
Loss on change of fair value of derivative liability 1,269  
Accounts receivable (925,813) (528,769)
Prepaid expenses (20,122) (4,195)
Accounts payable and accrued expenses (16,157) 597,480
Due to Factor (45,966) 200,956
Income Taxes Payable 1,600   
Deferred revenue 262,938 (6,500)
Net cash used in operating activities (927,758) (128,390)
Acquisition and cancelation of treasury shares (75,000)  
Cash acquired with acquisition   1,116
Purchase of equipment (820) (3,907)
Payment of long term deposit    (2,278)
Net cash used in investing activities (75,820) (5,069)
Net proceeds from notes payable 112,000  
Net proceeds from convertible notes payable 58,000  
Net proceeds from notes payable, related party   127,988
Net proceeds from lender advances 885,000  
Net repayments of notes payable, related party (47,077)  
Net cash provided by financing activities 1,007,923 127,988
Net increase (decrease) in cash 4,345 (5,471)
Cash, beginning of the period 1,657 7,128
Cash, end of period 6,002 1,657
Interest paid      
Taxes paid      
Common stock issued in settlement of convertible notes payable $ 37,100