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, 2014
Sep. 30, 2013
CASH FLOW FROM OPERATING ACTIVITES:    
Net Loss for the Period $ (791,709) $ (1,064,391)
Adjustments to reconcile net loss to net cash used by operating activities:    
Shares issued for services and rent 207,300 287,682
Stock option expense 43,530   
Depreciation 29,476 19,395
Gain on extinguishment of debt    (120,862)
Loss on disposal of assets    35,259
Inventory impairment    45,397
Contributed services    32,963
Interest expense on shareholder loan 1,423 275
Changes in Operating Assets and Liabilities:    
(Increase) / decrease in prepaids & other assets (25,006) 25,924
Decrease / (increase) in inventory (104,034) 60,257
Increase accounts payable (318) 10,109
Increase in accrued expenses 187,623 2,373
Increase in accrued interest 10,848 6,851
Increase in accrued salary 96,395 130,383
Net Cash (Used) in Operating Activities (344,472) (521,937)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (59,954) (40,457)
Net Cash Used by Investing Activities (59,954) (40,457)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of stock 75,000 228,000
Officer advances 10,400   
Repayment of officer advance (32,900)   
Payments on loan from shareholders    (5,470)
Proceeds from notes payable 376,847 412,742
Payments on notes payable (32,464) (123,196)
Net Cash Provided by Financing Activities 396,883 512,076
Net Increase (decrease) in Cash (7,543) (50,318)
Cash at Beginning of Period 8,398 67,860
Cash at End of Period 855 17,542
Cash paid during the year for:    
Interest 107   
Franchise and income taxes      
Supplemental disclosure of non-cash activities:    
Issuance of stock options 195,885   
Stock issued for conversion of debt 181,359   
Stock issued for accrued rent 127,938 49,260
Stock issued for prepaid rent $ 149,970 $ 539,000