Quarterly report pursuant to sections 13 or 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash Flows from Operating Activities    
Net (Loss) $ (311,145) $ (509,461)
Adjustments to reconcile net (loss) to net cash used in operating activities:    
Depreciation 2,858 22,907
Amortization of prepaid consulting    17,500
Amortization of original issue discount 11,108 8,461
Amortization of beneficial conversion feature value 17,852 49,621
Amortization of warrant discounts 22,772 40,654
Options issued for services 8,167   
Investor relation expense for warrant term modifications 33,333   
Changes in assets and liabilities:    
Accounts receivable (149,185) 42,802
Prepaids 5,439   
Other assets 3,000   
Accounts payable 55,534 18,449
Accounts payable - related party (5,861)   
Accrued expenses 172,202 34,426
Accrued interest 2,422 1,784
Deferred revenue 19,199   
Net Cash (Used in) Operating Activities (112,305) (272,857)
Cash Flows from Financing Activities    
Repayment for checks written in excess of cash balances (3,880)   
Proceeds from notes - related parties 112,335 130,265
Repayment of notes - related parties (52,852)   
Proceeds from shareholder    50,000
Proceeds from convertible notes, shareholders    76,250
Repayment of convertible notes, shareholders (8,668)   
Proceeds from factor, net of repayments 29,351   
Repayments to factor, net of proceeds    60,939
Insurance premium proceeds    457
Insurance premium repayments (4,612)   
Proceeds from line of credit facility 32,400 58,466
Repayments of line of credit facility (35,139) (54,633)
Proceeds from third party notes 45,000   
Net Cash Provided by Financing Activities 113,935 321,744
Net Change in Cash and Cash Equivalents 1,630 48,887
Cash and Cash Equivalents at Beginning of Period    988
Cash and Cash Equivalents at End of period 1,630 49,875
Supplemental disclosure of cash flow information:    
Cash paid for interest 35,816 18,859
Cash paid for taxes      
Non-cash investing and financing activity    
Conversion of convertible note and accrued interest $ 13,750