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Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities    
Net loss $ (5,712,199) $ (3,691,674)
Adjustments to reconcile net loss to net cash used in operating activities:    
Provision for doubtful accounts 444,084 180,899
Provision for inventory reserve 150,000   
Write-off of other current assets 100,000   
Depreciation and amortization 248,398 198,836
Stock-based compensation 948,923 490,765
Amortization of deferred debt discount 889,186 543,407
Gain on settlement of accounts payable (32,210)   
Gain on the sale of property and equipment (6,788)   
Gain on litigation settlement    (48,887)
Changes in operating assets and liabilities:    
Accounts receivable (60,186) (507,707)
Inventories (129,378) 14,229
Prepaid expenses and other current assets (27,772) 64,291
Accounts payable – trade 508,107 14,973
Accounts payable – related parties (218,649) 159,604
Accrued expenses and other current liabilities 98,904 98,098
Net cash used in operating activities (2,799,580) (2,483,166)
Acquisition of Hocks.com net assets (200,000)   
Acquisition of property and equipment (452,322) (100,171)
Employee advances (247,278) (51,429)
Proceeds from the sale of property and equipment 15,732   
Net cash used in investing activities (883,868) (151,600)
Cash flows from financing activities    
Proceeds from issuance of notes payable 3,000,000 500,000
Repayment of notes payable (1,000,000)   
Proceeds from exercise of common stock options 40,000   
Proceeds from the sale of common stock, net 1,972,241   
Repurchase of treasury stock (3,419,715)   
Cash overdraft 239,567   
Proceeds from issuance of convertible notes    150,000
Proceeds from issuance of convertible preferred stock, net    3,205,168
Proceeds from issuance of redeemable preferred stock 1,000,000   
Proceeds from notes payable and other advances – related parties 560,000 521,000
Repayment of notes payable and other advances – related parties (106,188) (535,000)
Net cash provided by financing activities 2,285,905 3,841,168
Net (decrease) increase in cash (1,397,543) 1,206,402
Cash - beginning of year 1,397,583 191,181
Cash - end of year 40 1,397,583
Cash paid for:    
Interest 18,416 8,065
Taxes      
Non-cash investing and financing activities:    
Exchange of notes payable for convertible notes - $1,000,000
Conversion of convertible notes into common stock 225,000 550,000
Common stock issued in connection with acquisition of Hocks.com 693,335 -
Issuance of series B preferred stock for settlement of accrued dividends 33,992   
Cashless exercise of warrants into common stock 14   
Cashless exercise of options into common stock 32   
Deemed dividends – convertible preferred stock    1,666,967
Deferred debt discount – convertible notes    660,932
Deferred debt discount – notes payable 1,131,303 304,037
Accrued costs of convertible preferred stock    174,788
Exchange of accrued expenses for series B preferred stock    86,758
Accrued dividends 244,001 33,992
Exchange of notes payable for series B preferred stock    15,000
Conversion of series A preferred stock to common stock    108
Purchase of equipment under capital lease obligation 12,547   
Purchase of equipment for accounts payable 264,279   
Redeemable series C preferred stock discount 526,522   
Deemed dividend – redeemable series C preferred stock 92,916   
Purchase price allocation:    
Current assets - Inventory 200,000  
Customer relationships 693,335  
Net fair value of assets acquired/Total purchase price $ 893,335