Annual report pursuant to section 13 and 15(d)

Statements of Cash Flows

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Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Statement of Cash Flows [Abstract]    
Net loss from for the year $ (473,336) $ (135,861)
Depreciation expense 22,412 12,832
Amortization expense 435,218 26,258
Amortization of debt discount 52,158 0
Provision for bad debts 44,000 55,617
Write-off of inventory 15,000 0
Share-based compensation 28,000 26,665
Changes in Assets and Liabilities    
(Increase) decrease in accounts receivable (575,185) 4,982
(Increase) in miscellaneous receivable (100,813) (8,184)
(Increase) in inventory (107,327) (51,701)
(Increase) decrease in prepaid expenses (32,710) 18,374
Increase (decrease) in accounts payable 78,677 (97,449)
Increase (decrease) in accrued expenses 250,757 (9,895)
Increase (decrease) in accrued interest - related party (25,973) 9,553
Increase in deferred revenue 115,181 12,138
Net Cash Used in Operating Activities (273,941) (136,671)
Acquisition of property and equipment (20,948) (24,617)
Payments received on note receivable 28,510 40,026
Increase in other assets 0 (18,113)
Net Cash Used in Investing Activities 7,562 (2,704)
Payments on notes payable - related party (103,474) (249,349)
Collection of stock subscription receivable 6,604 15,447
Payments on note payable (81,057) (91,128)
Proceeds from issuance of common stock 200,000 500,000
Net Cash Provided by Financing Activities 22,073 174,970
Net Increase (Decrease) in Cash and Cash Equivalents (244,306) 35,595
Cash and Cash Equivalents - Beginning of Year 444,434 408,839
Cash and Cash Equivalents - End of Year 200,128 444,434
Cash paid for interest 115,537 55,454
Cash paid for income taxes 0 0
Common Stock issued for payment of accounts payable 0 16,000
Intangible assets acquired through the issuance of notes payable recorded at fair values 21,150,000 126,000
Intangible assets acquired through the issuance of common stock recorded at fair values 480,000 90,000
Debt discount related to fair value of notes payable 1,530,000 0
Inventory reclassified to products held for lease $ 50,537 $ 0