Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
CASH FLOW FROM OPERATING ACTIVITES:    
Net Loss for the Period $ (1,064,391) $ (651,010)
Adjustments to reconcile net loss to net cash used by operating activities:    
Shares issued for services and rent 287,682 25,710
Depreciation 25,843 10,634
Gain on extinguishment of debt (120,862)   
Loss on disposal of fixed assets 35,259   
Inventory impairment 45,397   
Contributed services 32,963   
Interest expense on shareholder loan 275 427
Changes in Operating Assets and Liabilities:    
(Increase) / decrease in prepaids & other assets 25,924 (46,032)
Decrease in inventory 60,257 (34,644)
Increase in accounts payable 10,109 74,945
Increase in accrued expenses 2,373 251,392
Increase in accrued interest 6,851 4,838
Increase in accrued salary 130,383   
Net Cash Used in Operating Activities (521,937) (363,740)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (40,457) (50,650)
Net Cash Used by Investing Activities (40,457) (50,650)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of stock 228,000 508,500
Payments on loan from shareholders (5,470)  
Proceeds from notes payable 412,742 32,509
Payments on notes payable (123,196) (14,944)
Net Cash Provided by Financing Activities 512,076 526,065
Net Increase (decrease) in Cash (50,318) 111,675
Cash at Beginning of Period 67,860 38,993
Cash at End of Period 17,542 150,668
Cash paid during the year for:    
Interest    430
Franchise and Income Taxes      
Supplemental disclosure of non-cash activities:    
Forgiveness of related party debt 539,000   
Stock issued for accrued rent 30,000   
Stock issued for prepaid rent $ 19,260