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 $)
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (338,616) $ (618,352)
Adjustments to reconcile net income (loss) to cash flows used in operating activities:    
Depreciation and amortization 2,327 1,461
Amortization of debt discount 78,875 18,052
Gain on settlement of debt (17,800)   
Stock Based Compensation 253,107 114,332
Common stock issued in settlement of interest    11,820
Loss on change of fair value of derivative liability 81,972   
Changes in operating assets and liabilities:    
Accounts receivable (751,847) (406,179)
Prepaid expenses (8,028) 2,523
Accounts payable and accrued expenses 376,556 (60,480)
Income taxes payable (1,600)   
Due to factor (154,990) (120,000)
Deferred revenue 328,562 259,562
Net cash used in operating activities (151,482) (797,261)
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 328,480 106,326
Proceeds from lender advances    810,000
Repayments of notes payable (150,260)   
Net Repayments of notes payable, related party (21,253) (36,077)
Net cash provided by financing activities 156,967 880,249
Net increase (decrease) in cash (4,236) 7,988
Cash, beginning of the period 6,002 1,657
Cash, end of period 1,766 9,645
Supplemental disclosures of cash flow information:    
Interest paid 119,648   
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