Quarterly report pursuant to Section 13 or 15(d)

CONDENSED STATEMENTS OF CASH FLOWS (unaudited)

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CONDENSED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,904,752) $ (5,549,829)
Adjustments to reconcile net loss to cash used in operating activities:    
Depreciation 8,569 7,951
Amortization of debt discount 579,016 995,066
Stock based compensation 556,332 2,716,746
Fair value of warrants issued for services 0 837,243
Changes in operating assets and liabilities:    
Prepaid expenses (21,806) 0
Accounts payable (178,737) (154,241)
Deferred rent payable (1,006) 0
Net cash used in operating activities (962,384) (1,147,064)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment 0 (9,765)
Net cash used in investing activity 0 (9,765)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from the sale of Series C preferred stock and warrants 0 1,484,070
Proceeds from sale of common stock 732,666 0
Payments of related party notes 0 (30,000)
Net repayments of related party advances (30,281) (16,540)
Net cash provided by financing activities 702,385 1,437,530
Net (decrease) increase in cash and cash equivalents (259,999) 280,701
Cash and cash equivalents, beginning of the period 302,187 24,237
Cash and cash equivalents, end of the period 42,188 304,938
Supplemental disclosures of cash flow information:    
Cash paid during the period for interest 0 0
Cash paid during the period for income taxes 0 0
Non cash investing and financing activities:    
Convertible bridge notes payable exchanged for preferred shares 0 600,000
Series A Preferred Stock [Member]
   
Non cash investing and financing activities:    
Common stock issued upon conversion preferred stock and accrued dividends 1,063,331 0
Series B Preferred Stock [Member]
   
Non cash investing and financing activities:    
Common stock issued upon conversion preferred stock and accrued dividends $ 997,526 $ 0