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 32 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
CASH FLOW FROM OPERATING ACTIVITES:      
Net Loss for the Period $ (651,010) $ (2,134,738) $ (3,112,986)
Adjustments to reconcile net loss to net cash used by operating activities:      
Shares Issued for Services 25,710 1,877,884 1,826,937
Depreciation and Amortization 10,634 1,693 15,475
Contributed Services-Officers    9,344 103,400
Interest Expense on Shareholder loan & notes payable 427 38 572
Changes in Operating Assets and Liabilities:      
Decrease (Increase) in Prepaids (37,600) 389 (58,084)
Increase in Inventory (34,644)    (34,644)
Increase in Deposits       (10,610)
Increase in Accounts Payable 74,945 10,943 112,510
Increase in Accrued Expenses 251,392 202,500 517,392
Increase in Other Assets (8,432)    (8,432)
Increase in Interest Payable 4,838 4,350 15,788
Net Cash (Used) in Operating Activities (363,740) (27,597) (632,682)
Purchase of Property and Equipment (50,650)    (90,685)
Net Cash Used by Investing Activities (50,650)    (90,685)
Bank Overdraft    (24)   
Proceeds from Issuance of Stock 508,500 45,000 743,500
Proceeds from Loan from Shareholders    10,332 10,332
Payments on Loan from Shareholders    (1,862) (4,862)
Proceeds from Notes Payable 32,509 10,000 140,009
Payments on Notes Payable (14,944)    (14,944)
Net Cash Provided by Financing Activities 526,065 63,446 874,035
Net Increase in Cash 111,675 35,849 150,668
Cash at Beginning of Period 38,993     
Cash at End of Period 150,668 35,849 150,668
Cash paid during the period for:      
Interest 430    430
Franchise and Income Taxes