XML 26 R5.htm IDEA: XBRL DOCUMENT v2.3.0.15
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:  
Net loss$ (2,612,433)$ (3,786,576)
Adjustments to reconcile net loss to net cash used in operating activities:  
Gain on extinguishment of debt(21,320)(3,500)
Debt modification expense966161,376
Write off of website development costs38,750 
Warrants/options issued for consulting services61,954215,196
Common stock issued for services235,38363,600
Common stock issued for compensation165,50050,000
Stock issued for interest10,33917,667
Compensatory element of stock options268,504689,927
Depreciation14,35044,805
Amortization of software and website development costs75,910119,023
Amortization of discount related to debt566,140459,701
Increase (decrease) in cash flows as a result of changes in asset and liability account balances:  
Accounts receivable (306)
Prepaid expenses and other assets8,143490
Deferred rent(2,769)(2,769)
Accounts payable and accrued expenses602,686261,469
Due to stockholders(4,314) 
Total adjustments2,020,2222,076,679
Net cash used in operating activities(592,211)(1,709,897)
Cash flows from investing activities:  
Capitalized software costs(140,551)(142,299)
Net cash used in investing activities(140,551)(142,299)
Cash flows from financing activities:  
Proceeds from sale of Preferred B securities 1,950,000
Proceeds from sale of common stock347,500 
Proceeds from exercise of stock options26,9701,600
Payments to stockholders (86,271)
Proceeds from bridge notes payable373,500200,000
Payments under capital lease(3,229)(35,584)
Net cash provided by financing activities711,9681,816,683
Net decrease in cash(20,794)(35,513)
Cash at beginning of period60,20937,890
Cash at end of period39,4152,377
Supplemental Schedules of Noncash Investing and Financing Activities:  
Restricted stock issued in connection to bridge loans 188,112
Beneficial conversion feature in relation to convertible loans 469,894
Common stock dividends payable for Series B Preferred Stock352,62563,997
Common stock dividends issued for Series B Preferred Stock 90,430
Supplemental Disclosures of Cash Flow Information:  
Cash paid for interest  
Cash paid for taxes  
Bridge Loan
  
Cash flows from financing activities:  
Payments of notes payable(30,000)(210,000)
Supplemental Schedules of Noncash Investing and Financing Activities:  
Debt discount131,83315,121
Equipment
  
Cash flows from financing activities:  
Payments of notes payable(2,773)(3,062)
Settlement of Litigation
  
Supplemental Schedules of Noncash Investing and Financing Activities:  
Common stock issued 72,000
Settlement of Debt
  
Supplemental Schedules of Noncash Investing and Financing Activities:  
Common stock issued248,70014,000
Convertible Debt
  
Supplemental Schedules of Noncash Investing and Financing Activities:  
Common stock issued1,116,126315,563
Interest Expense
  
Supplemental Schedules of Noncash Investing and Financing Activities:  
Common stock issued125,012228,750
Warrant
  
Supplemental Schedules of Noncash Investing and Financing Activities:  
Debt discount 34,719
Warrants Modification Agreement
  
Supplemental Schedules of Noncash Investing and Financing Activities:  
Deemed preferred stock dividend 2,023,804
Issuance of warrants and common stock in connection with purchase of Series B Preferred
  
Supplemental Schedules of Noncash Investing and Financing Activities:  
Deemed preferred stock dividend $ 3,441,441