Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
OPERATING ACTIVITIES:    
NET INCOME (LOSS) $ (391,308) $ 326,599
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Loss on disposal and impairment of available-for-sale securities 42,821   
Derivative, Loss on Derivative 269,981  
Depreciation 181 280
Changes in current assets and liabilities:    
Accounts receivable (98,760) (85,925)
Inventory 20,215 (7,574)
Prepaid expenses and other (21,819) 33,469
Accounts payable and accrued expense (169,040)   
Due from related party 20,216 (50,000)
Deferred revenue 258,968 (71,478)
Net cash provided by (used in) operating activities (68,545) 145,371
INVESTING ACTIVITIES:    
Cash paid on business combination, net (304,639)   
Cash from reverse merger 1,629,263   
Cash from sales of available-for-sale securities 168,704   
Net cash provided by investing activities 1,493,328   
FINANCING ACTIVITIES:    
Proceed from common stock issue for cash 653,327   
Redemption of Series B-1 preferred stock (350,000)   
Net cash provided by financing activities 303,327   
NET (DECREASE) INCREASE IN CASH 1,728,110 145,371
CASH, beginning of period 109,826 162,297
CASH, end of period 1,728,110 307,668
Cash paid during the quarters ended June 30:    
Interest 1,429   
Income taxes      
Noncash investing and financing activities for the quarters ended June 30:    
Conversion of Series A preferred stock to common stock 381   
Reverse merger adjustment (2,116,221)   
Business combination adjustment $ 79,000