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 24 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
CASH FLOW FROM OPERATING ACTIVITES:      
Net Loss for the Year $ (1,363,986) $ (867,143)  
Adjustments to reconcile net loss to net cash used by operating activities:      
Shares issued for services and rent 295,647 65,251  
Depreciation 33,928 20,421  
Contributed services 32,964    32,964
Gain on extinguishment of debt (121,238) 15,777  
Loss on disposal of fixed assets 35,259     
Inventory impairment 60,316     
Interest expense on shareholder loan 755 602  
Changes in Operating Assets and Liabilities:      
(Increase) / decrease in prepaids 33,809 (44,805)  
(Increase) / decrease in inventory 34,527 (120,573)  
Increase in accounts payable 40,116 30,205  
Increase in accrued expenses 124,183 373,044  
Increase in interest payable 7,563 6,450  
Net Cash (Used) in Operating Activities (786,157) (520,771)  
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of property and equipment (52,858) (74,150)  
Net Cash Used by Investing Activities (52,858) (74,150)  
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of stock 603,000 613,500  
Officer advances 70,000     
Repayment of officer advance (37,500)     
Payments on loan from shareholders (5,470)     
Proceeds from notes payable 472,742 34,072  
Payments on notes payable (323,219) (23,784)  
Net Cash Provided by Financing Activities 779,553 623,788  
Net Increase (decrease) in Cash (59,462) 28,867  
Cash at Beginning of Period 67,860 38,993 38,993
Cash at End of Period 8,398 67,860 8,398
Cash paid during the year for:      
Interest 728 601  
Franchise and income taxes 301 1,600  
Supplemental disclosure of non-cash activities:      
Forgiveness of related party debt 539,000    539,000
Stock issued for accrued rent 30,000     
Stock issued for prepaid rent $ 19,260