Quarterly report pursuant to sections 13 or 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash Flows from Operating Activities:    
Net income (loss) for the period $ 19,771 $ (463,250)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:    
Depreciation expense 13,661 13,757
Amortization expense 1,210,988 24,496
Provision for bad debts 30,000 27,000
Share-based compensation 89,701 20,000
Gain on settlement (50,000)   
Amortization of debt discount 52,158   
Changes in Assets and Liabilities    
(Increase) in accounts receivable (269,337) (36,811)
Decrease (Increase) in miscellaneous receivable 8,867 (44,606)
Decrease (Increase) in prepaid expenses 29,984 (12,641)
(Increase) in inventory (29,186) (2,443)
Increase (Decrease) in accounts payable 54,245 (14,630)
Increase in accrued expenses and taxes 122,455 189,827
(Decrease) in accrued interest - related party    (25,973)
Increase (Decrease) in deferred revenue 101,015 (3,186)
Net Cash Provided By (Used in) Operating Activities 1,384,322 (328,460)
Cash Flows from Investing Activities:    
Acquisition of property and equipment (16,584) (20,368)
(Increase) in products leased and held for lease    (38,769)
Decrease in other assets 52,717 2,717
(Increase) in note receivable (7,330)   
Payments received on note receivable 1,300 34,627
Net Cash Provided By (Used in) Investing Activities 30,103 (21,793)
Cash Flows from Financing Activities:    
Principal payments on notes payable - related party (469) (105,037)
Collection of stock subscription receivable    6,604
Principal payments on note payable (1,267,130) (74,848)
Proceeds from issuance of common stock    200,000
Net Cash Provided By (Used in) Financing Activities (1,267,599) 26,719
Net Increase (Decrease) in Cash and Cash Equivalents 146,826 (323,534)
Cash and Cash Equivalents - Beginning of Period 200,128 444,434
Cash and Cash Equivalents - End of Period 346,954 120,900
Supplemental Cash Flow Information:    
Cash paid for interest 505,083 94,809
Cash paid for income taxes