v2.4.0.8

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	6 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net Loss for the period	$ (413,472)	$ (570,679)
Adjustments to reconcile net loss to net cash used in operating activities:
Options issued for services	34,249	42,899
Options issued for financing costs	0	11,480
Depreciation and amortization	4,956	2,659
Contribution of rent from a related party	0	1,500
Bad debt expense	(14,369)	0
Changes in operating assets and liabilities
(Increase) decrease in inventory	4,092	18,149
(Increase) decrease in accounts receivable	190,413	24,701
(Increase) decrease in prepayments and other current assets	(55,073)	(14,003)
(Increase) decrease in notes receivable - employee advances	125	0
Increase (decrease) in accrued expenses - related party	19,017	8,676
Increase (decrease) in accounts payable	(3,104)	114,671
Increase (decrease) in other payables	42,194	54,417
Increase (decrease) in deferred revenue	36,575	12,069
Net cash used in operating activities	(154,397)	(293,461)
Cash flow used in investing activities
Patent development costs	0	(13,710)
Purchase of property, plant and equipment	(248)	0
Net cash used in investing activities	(248)	(13,710)
Cash flows from financing activities:
Cash from sale of common stock	5,000	100,000
Proceeds from related party notes payable	124,150	180,000
Payments towards related party note payable	0	(50,000)
Net cash provided by financing activities	129,150	230,000
Net decrease in cash	(25,495)	(77,171)
Cash, beginning of period	81,060	97,443
Cash, end of period	55,565	20,272
Supplemental cash flow information:
Interest paid	0	0
Income taxes paid	0	0
Non-cash investing and financing activities
Common stock issued for accrued liabilities	73,335	0
Debt and liabilities settled with common stock	$ 67,322	$ 0

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

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Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation).

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