Quarterly report pursuant to Section 13 or 15(d)

CONDENSED STATEMENTS OF CASH FLOWS

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CONDENSED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash Flows from Operating Activities    
Net Loss $ (372,196) $ (311,145)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 2,060 2,858
Amortization of prepaids 29,750   
Amortization of discounts 6,489 11,108
Amortization of beneficial conversion feature value    17,852
Amortization of warrant discounts    22,772
Other 608   
Options issued for services 59,810 8,167
Investor relation expense for warrant term modifications    33,333
Gain on equipment sale 305   
Changes in operating assets and liabilities:    
Accounts receivable 26,696 (149,185)
Prepaids (147) 5,439
Other Assets (1,200) 3,000
Accounts payable 10,258 55,534
Accounts payable - related party    (5,861)
Accrued expenses 12,812 172,202
Accrued interest 17,439 2,422
Deferred revenue (17,714) 19,199
Net Cash Used In Operating Activities (225,030) (112,305)
Cash Flows from Investing Activities    
Proceeds from sale of property and equipment 225   
Net Cash Provided by Investing Activities 225   
Cash Flows from Financing Activities    
Proceeds from line of credit facility 40,329 32,400
Repayments of line of credit facility (39,979) (35,139)
Insurance premium repayments    (4,612)
Repayment for checks written in excess of cash balances    (3,880)
Proceeds from factor, net of repayments    29,351
Proceed from notes third party    45,000
Proceeds from Sale of Common Stock and Warrants 210,000   
Repayment of convertible notes, shareholders    (8,668)
Proceeds from notes payable related parties 62,500 112,335
Repayments from note payable related parties (47,426) (52,852)
Net Cash Provided by Financing Activities 225,424 113,935
Net Change in Cash and Cash Equivalents 619 1,630
Cash and Cash Equivalents at Beginning of Period 166   
Cash and Cash Equivalents at End of period 785 1,630
Supplemental disclosure of cash flow information:    
Cash paid for interest 71,528 35,816
Cash paid for taxes      
Non-cash investing and financing activity:    
Conversion of convertible notes and accrued interest    13,750
Reclassification of accounts payable to notes payable, related party 20,000   
Conversion of accounts payable to common stock $ 6,800