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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:  
Net loss$ (3,142,736)$ (705,256)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:  
Depreciation26,18325,898
Change in deferred tax asset, net34,949(134,571)
Equity based compensation for consulting and legal services27,29824,137
Accretion of convertible debt discounts321,2860
Forgiveness of debt interest expense - related party2,082,5000
Amortization of prepaid equity based compensation expense279,087202,888
Stock and warrant interest expense on loan payable conversion0181,446
Loss on issuance of stock for purchase of intellectual property0148,500
Gain on sale of fixed asset(5,000)0
Changes in operating assets and liabilities:  
Change in accounts receivable, net2,854(17,290)
Change in accounts receivable - related parties(18,739)(16,645)
Change in inventory(37,005)(35,902)
Change in prepaid expenses and other current assets(16,480)(9,407)
Change in other assets04,073
Change in accounts payable and accrued liabilities28,210297,300
Change in customer deposits38,5126,210
Change in income tax refunds receivable0121,802
Change in other liabilities(11,199)(754)
Change in other liabilities and accrued interest - related parties(5,505)13,173
Change royalties payable - related parties29,19035,342
Net cash (used in) provided by operating activities(366,595)140,944
Cash flows from investing activities:  
Sale of fixed asset5,0000
Purchase of fixed assets(1,669)(6,786)
Net cash provided by (used in) investing activities3,331(6,786)
Cash flows from financing activities:  
Proceeds from borrowing on convertible debenture440,0000
Proceeds from issuance of stock under private offering5,0000
Proceeds from short term loan exchanged for stock5000
Proceeds from borrowing on loan payable10,0000
Proceeds from borrowings on notes payable35,7640
Principal payment on convertible debenture(24,000)0
Principal payments on notes payable(2,450)(28,167)
Principal payments on notes payable - related parties0(27,531)
Net cash provided by (used in) financing activities464,814(55,698)
Net change in cash101,55078,460
Cash, beginning of period4,1712,713
Cash, end of period105,72181,173
Supplemental disclosures of cash flow information:  
Cash paid for interest59,83357,273
Cash paid for income taxes$ 0$ 0