Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED BALANCE SHEETS

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CONSOLIDATED BALANCE SHEETS (USD $)
Dec. 31, 2013
Dec. 31, 2012
Current assets:    
Cash $ 108,566 $ 6,002
Accounts receivable, net 299,220 1,074,552
Accounts receivable, other 15,000   
Prepaid expenses 81,317 24,317
Deposits, short term 25,000   
Total current assets 529,103 1,104,871
Property and equipment, net 8,845 5,342
Other assets:    
Accounts receivable, long term 44,359   
Licensing agreement, net 3,838,223 3,970,575
Deposits, long term 5,334 2,278
Total other assets 3,887,916 3,972,853
Total assets 4,425,864 5,083,066
Current liabilities:    
Accounts payable and accrued expenses 957,786 615,304
Due to factor    154,990
Income Taxes payable    1,600
Deferred revenue, short term 192,870 78,467
Advances from lenders 95,599 885,000
Convertible note payable, net of debt discount    5,708
Notes payable, net of debt discount, related party 28,480 95,736
Notes payable, related party 87,562 144,815
Total current liabilities 1,362,297 1,981,620
Deferred revenue, long term 741,723 184,471
Convertible notes payable, net of debt discount 601,328   
Notes payable, net of debt discount, related party 190,888   
Warrant liability 287,731   
Derivative liability 1,019,103 80,039
Total long term debt 2,840,773 264,510
Total liabilities 4,203,070 2,246,130
Commitments and contingencies      
Stockholders' equity:    
Common stock, $0.001 par value; 200,000,000 shares authorized, 127,343,501 and 100,768,501 shares issued and outstanding as of December 31, 2013 and 2012, respectively 127,344 100,769
Common stock subscribed 100,000 100,000
Additional Paid in Capital 5,432,563 4,234,758
Accumulated deficit (5,437,113) (1,598,591)
Total stockholders' equity 222,794 2,836,936
Total liabilities and stockholders' equity $ 4,425,864 $ 5,083,066