XML 27 R5.htm IDEA: XBRL DOCUMENT v2.3.0.15
Statements Of Cash Flows (USD $)
9 Months Ended131 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2011
OPERATING ACTIVITIES:   
Net loss$ (1,820,949)$ (2,109,014)$ (15,954,096)
Adjustments to reconcile net loss to net cash used in operating activities:   
Common stock and long-term debt issued for acquisition of license agreement  2,735,649
Common stock issued for services and amortization of common stock issued for services834,532336,6544,320,480
Options and warrants issued to employees, directors and consultants  614,287
Contribution from shareholder  188,706
Amortization of beneficial conversion feature7,000205,436531,561
Amortization of deferred loan costs  24,750
Write off of deferred offering costs  119,383
Write off of deferred non cash offering costs  49,120
Gain on disposal of fixed assets  (1,965)
Depreciation3,0563,51650,164
Amortization of agency fee42,632 100,000
Amortization of discount on notes payable  33,858
Increase in prepaid expenses4,227(111,211)(104,665)
Increase (decrease) in:   
Accounts payable47,354100,283299,760
Accrued expenses34,00031,753307,250
Accrued payroll296,622(59,292)571,633
Accrued royalty fees187,500187,5001,655,667
Accrued interest 36914,718
Net cash used by operating activities(364,026)(1,414,006)(4,443,740)
INVESTING ACTIVITIES:   
Payment of agency fee rights  (100,000)
Issuance of notes receivable from stockholders  (23,000)
Repayment of notes receivable from stockholders  22,095
Advances to related party  805
Proceeds from sale of fixed assets  2,500
Purchase of fixed assets(46,954)(4,459)(96,883)
Net cash used by investing activities(46,954)(4,459)(194,483)
FINANCING ACTIVITIES:   
Repayment of stockholder advances  (157,084)
Advances from stockholders5,000 271,152
Increase in deferred offering costs  (194,534)
Proceeds from issuance of common stock236,320912,3173,872,793
Proceeds from exercise of options  45,000
Debt issuance costs  (19,750)
Repayment of convertible notes payable  (23,000)
Proceeds from issuance of convertible notes payable50,000250,000852,250
Net cash provided by financing activities291,3201,162,3174,646,827
NET (DECREASE) INCREASE IN CASH(119,660)(256,148)8,604
CASH, BEGINNING OF PERIOD128,264603,601 
CASH, END OF PERIOD8,604347,4538,604
Supplemental disclosures of cash flow information and noncash investing and financing activities:   
Cash paid for interest  21,477
Subscription receivable for issuance of common stock  29,090
Option to acquire license for issuance of common stock  10,000
Deferred offering costs netted against issuance of common stock under private placement  33,774
Deferred offering costs netted against issuance of common stock  41,735
Value of beneficial conversion feature of notes payable  19,507
Deferred non-cash offering costs in connection with private placement  74,850
Application of amount due from shareholder against related party debt  8,099
Amortization of offering costs related to stock for services  25,730
Settlement of notes payable in exchange for common stock  356,466
Common stock issued in exchange for prepaid services 312,1502,245,164
Common stock issued in exchange for accrued royalties  416,667
Receivable issued for exercise of common stock options200,000 367,000
Common stock issued in exchange for fixed assets  5,000
Acquisition of agency fee intangible through accrued expenses  900,000
Beneficial conversion feature on convertible notes7,000248,889531,561
Conversion of convertible debt to equity (7,340,152 shares since inception)50,000175,000772,000
Common stock issued for accounts payable90,31355,125180,438
Common stock issued for accrued payroll15,000202,00015,000
Write off uncollectible stock subscription receivable 155,000155,000
Write off of intangible asset and agency fee payable$ 900,000 $ 900,000