Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (209,580) $ (457,378)
Adjustments to reconcile net income (loss) to cash flows used in operating activities:    
Depreciation and amortization 1,491 974
Amortization of debt discount 71,151 18,052
Gain on settlement of debt (17,800)   
Stock Based Compensation 104,503 114,200
Common stock issued in settlement of interest    11,820
Loss on change of fair value of derivative liability 193,209   
Changes in operating assets and liabilities:    
Accounts receivable (560,847) (406,836)
Prepaid expenses (14,406) 2,523
Accounts payable and accrued expenses 163,810 (93,428)
Income taxes payable (1,600)   
Due to factor (116,585) (80,000)
Deferred revenue 274,971 274,685
Net cash used in operating activities (111,683) (615,388)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Acquisition and cancelation of treasury shares    (75,000)
Payment of long term deposits (3,056)   
Purchase of equipment (6,665)   
Net cash used in investing activities (9,721) (75,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable 314,980 161,325
Proceeds from lender advances    725,000
Repayments of notes payable (101,420)   
Net Repayments of notes payable, related party (43,453) (32,703)
Net cash provided by financing activities 170,107 853,622
Net increase (decrease) in cash 48,703 163,234
Cash, beginning of the period 6,002 1,657
Cash, end of period 54,705 164,891
Supplemental disclosures of cash flow information:    
Interest paid 99,284   
Taxes paid      
Non-cash financing activities:    
Common stock issued in settlement of notes payable    37,100
Common stock issued in settlement of interest    11,820
Common stock issued in settlement of outstanding accounts payable $ 3,000