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3. Correction of Errors (Tables)
9 Months Ended
Sep. 30, 2012
Accounting Changes and Error Corrections [Abstract]  
Schedule of Effect on Previously Issued Financial Statements

Balance Sheet as of September 30, 2011:

 

   As Originally      
   Reported     As Restated
   September 30,     September 30,
   2011  Adjustments  2011
Assets        (Restated)
Current assets:               
Cash  $98,003   $   $98,003 
Accounts receivable, net   194,897        194,897 
Deferred financing cost, current   2,317        2,317 
Other current assets   13,252        13,252 
Total current assets   308,469        308,469 
                
Property and equipment, net   184,187        184,187 
Intangible assets, net   347,778    186,668    534,446 
Goodwill   253,588    (200,000)   53,588 
Prepaid expense   1,000,000    (1,000,000)    
                
Total assets  $2,094,022   $(1,013,332)  $1,080,690 
                
                
Liabilities and Stockholders' Equity (Deficit)               
Current liabilities:               
Accounts payable and accrued liabilities  $115,238   $(2,153)  $113,085 
Deferred revenue   204,659        204,659 
Current maturities of capital lease obligations payable   46,537        46,537 
Current maturities of long term debt   145,445        145,445 
Derivative liability   122,289        122,289 
Total current liabilities   634,168    (2,153)   632,015 
                
Capital lease obligations payable, net of current maturities   38,687        38,687 
Notes payable, related parties, net of current maturities   494,009        494,009 
Long term debt, net of current maturities   257,675        257,675 
 Total liabilities   1,424,539    (2,153)   1,422,386 
                
Stockholders' equity (deficit):               
Common stock, Class A, $0.01 par value, 60,000,000 shares authorized, 30,448,294 shares issued and outstanding   304,483        304,483 
Common stock, Class B, $0.01 par value, 60,000,000 shares authorized, 2,500,000 shares issued and outstanding   25,000        25,000 
Additional paid in capital   2,268,360        2,268,360 
Stockholders’ receivable, consisting of 25,000,000 shares       (1,000,000)   (1,000,000)
Accumulated deficit   (1,928,360)   (11,179)   (1,939,539)
Total stockholders' equity (deficit)   669,483    (1,011,179)   (341,696)
                
Total liabilities and stockholders' equity (deficit)  $2,094,022   $(1,013,332)  $1,080,690 

  

Statement of Operations for the three months ended September 30, 2011:

 

   As Originally      
   Reported     As Restated
   September 30,     September 30,
   2011  Adjustments  2011
         (Restated)
Revenue  $205,724   $   $205,724 
                
Expenses:               
General and administrative   99,733        99,733 
Salaries and wages   61,762        61,762 
Depreciation and amortization   28,290    3,333    31,623 
Total operating expenses   189,785    3,333    193,118 
                
Net operating income   15,939    (3,333)   12,606 
                
Other income (expense):               
Interest income   2        2 
Interest expense   (14,261)   2,153    (12,108)
Other expense   (122,289)       (122,289)
Total other income (expense)   (136,548)   2,153    (134,395)
                
Net loss  $(120,609)  $(1,180)  $(121,789)

 

Statement of Operations for the nine months ended September 30, 2011:

 

   As Originally      
   Reported     As Restated
   September 30,     September 30,
   2011  Adjustments  2011
         (Restated)
Revenue  $646,023   $   $646,023 
                
Expenses:               
General and administrative   291,460        291,460 
Salaries and wages   170,738        170,738 
Depreciation and amortization   81,627    9,999    91,626 
Total operating expenses   543,825    9,999    553,824 
                
Net operating income   102,198    (9,999)   92,199 
                
Other income (expense):               
Interest income   28        28 
Interest expense   (40,425)   2,153    (38,272)
Other expense   (122,289)       (122,289)
Total other income (expense)   (162,686)   2,153    (160,533)
                
Net loss  $(60,488)  $(7,846)  $(68,334)

 

The following adjustments were made on the September 30, 2011 Restated Statement of Cash Flows:

 

   As Originally      
   Reported     As Restated
   September 30,     September 30,
   2011  Adjustments  2011
               (Restated) 
 Cash flows from operating activities               
 Net loss  $(60,488)  $(7,846)  $(68,334)
 Adjustments to reconcile net loss to               
 net cash provided by operating activities:               
 Depreciation and amortization   79,187    9,999    89,186 
 Amortization of deferred financing costs   2,441        2,441 
 Derivative expense   122,289        122,289 
 Decrease (increase) in assets:               
 Accounts receivable   99,635        99,635 
 Other current assets   (5,000)       (5,000)
 Increase (decrease) in liabilities:               
 Accounts payable   (100,931)   (2,153)   (103,084)
 Net cash provided by operating activities   137,133        137,133 
                
 Cash flows from financing activities               
 Proceeds on capital lease obligations payable   36,831        36,831 
 Payments on capital lease obligations payable   (1,125)       (1,125)
 Proceeds from notes payable, related parties   85,710        85,710 
 Repayment of notes payable, related parties   (157,786)       (157,786)
 Proceeds from long term debt   109,271        109,271 
 Repayment of long term debt   (152,644)       (152,644)
 Net cash used in financing activities   (79,743)       (79,743)
                
 Net increase (decrease) in cash   57,390        57,390 
 Cash - beginning   40,613        40,613 
 Cash - ending  $90,003   $   $98,003 
                
 Supplemental disclosures:               
 Interest paid  $40,425   $(4,935)  $35,490 
 Income taxes paid  $   $   $