Quarterly report pursuant to sections 13 or 15(d)

Statements of Cash Flows (Unaudited)

v2.4.0.6
Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash Flows from Operating Activities    
Net (Loss) $ (815,048) $ (756,873)
cash provided from operating activities:    
Depreciation and amortization 33,054 12,664
Common stock for services 10,000 25,000
Amortization of prepaid consulting 20,000 131,687
Beneficial conversion feature, net 34,734  
Original issue discount, net 21,352 5,423
Detached warrants discount, net 162,256  
Changes in assets and liabilities    
Accounts receivable 11,902 74,556
Prepaid expenses 2,145 (4,332)
Other assets    (1,690)
Accounts payable 57,449 33,317
Accrued expenses and other liabilities 19,104 (1,887)
Deferred revenue 100,907 (3,192)
Net Cash (Used in) Operating Activities (342,145) (490,750)
Cash Flows from Investing Activities    
Loss on disposal of equipment (257)   
Investment in software development    (36,022)
Purchase of property and equipment    (16,130)
Net Cash (Used In) Investing Activities (257) (52,152)
Cash Flows from Financing Activities    
Proceeds from line of credit     
Payments made on line of credit (30,524) (1,635)
Proceeds from accounts receivable financing 241,698  
Payments on accounts receivable financing (208,847)  
Proceeds from related party debt 313,418  
Payments on related party debt (200,247)  
Proceeds from convertible notes 75,000 250,000
Proceeds from note payable 110,755  
Proceeds from note payable - shareholder 60,000 25,000
Payments on notes payable - shareholder (10,000)  
Net proceeds from insurance financing 311 4,378
Proceeds from issuance of stock    280,000
Net Cash Provided by Financing Activities 351,564 557,743
Net Change in Cash and Cash Equivalents 9,162 14,841
Cash and Cash Equivalents at Beginning of period 988 70,326
Cash and Cash Equivalents at End of Period 10,150  
Reduction in convertible notes payable-beneficial conversion    27,500
Increase in notes payable 348,926  
Interest amortization-original issue discount 21,352 5,423
Interest amortization-beneficial conversion feature 34,734 5,767
Interest amortization - warrants $ 162,256