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	$	–		$	–		$	–