Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED BALANCE SHEETS

v2.4.0.8
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Jun. 30, 2014
Dec. 31, 2013
Current assets:    
Cash $ 320,942 $ 108,566
Accounts receivable, net 348,113 299,220
Accounts receivable, other 15,000 15,000
Prepaid expenses 74,749 52,610
Deposits, short term 25,000 25,000
Total current assets 783,804 500,396
Property and equipment, net 7,561 8,845
Other assets:    
Prepaid expenses, long term 101,757 28,707
Accounts receivable, long term    44,359
Licensing agreement, net 3,772,046 3,838,223
Deposits, long term 37,738 5,334
Total other assets 3,911,541 3,916,623
Total assets 4,702,906 4,425,864
Current liabilities:    
Accounts payable and accrued expenses 656,725 957,786
Deferred revenue, short term 732,598 192,870
Settlement payable 220,000   
Advances from lenders    95,599
Notes payable, net of debt discount, related party 31,923 28,480
Notes payable, related party 114,635 87,562
Total current liabilities 1,755,881 1,362,297
Deferred revenue, long term 1,554,657 741,723
Convertible notes payable, net of debt discount 337,823 601,328
Notes payable, net of debt discount, related party 125,156 190,888
Settlement payable, long term 55,000   
Warrant liability 232,541 287,731
Derivative liability 400,753 1,019,103
Total long term debt 2,705,930 2,840,773
Total liabilities 4,461,811 4,203,070
Stockholders' equity:    
Convertible Preferred stock, no par value; 80,000 designated; 80,000 and -0- shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively 16,000   
Common stock, $0.001 par value; 200,000,000 shares authorized, 141,964,501 and 127,343,501 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively 141,965 127,344
Common stock subscribed 100,000 100,000
Additional Paid in Capital 6,156,846 5,432,563
Accumulated deficit (6,173,716) (5,437,113)
Total stockholders' equity 241,095 222,794
Total liabilities and stockholders' equity $ 4,702,906 $ 4,425,864