Quarterly report pursuant to Section 13 or 15(d)

Consolidated Balance Sheets

v2.4.0.6
Consolidated Balance Sheets (USD $)
Sep. 30, 2012
Dec. 31, 2011
Current assets    
Cash $ 166,391 $ 396
Accounts receivable, net of allowance for doubtful accounts of $43,875 and $18,050, respectively 348,260 243,846
Other current assets 248,259 15,924
Total current assets 762,910 260,166
Equipment, net 14,187 25,316
Goodwill 3,002,070 3,002,070
Intangible assets, net 704,842 1,116,506
Other assets 46,577 197,046
TOTAL ASSETS 4,530,586 4,601,104
Current liabilities    
Accounts payable 399,858 842,777
Accounts payable - related party 10,226   
Accrued interest 188,002 130,426
Accrued and deferred personnel compensation 212,379 237,691
Deferred revenue - related party 42,462 200,000
Deferred revenue and customer deposits 139,509 126,525
Convertible notes payable, net of discount 4,098,216 1,002,730
Notes payable, net of discount 172,446 736,270
Cash payment obligation, net of discount    86,714
Derivative liabilities 2,810,001 1,573,859
Other current liabilities 287,821 245,227
Earn-out payable 2,739,399   
Total current liabilities 11,100,319 5,182,219
Non-current liabilities    
Long term accounts payable    125,846
Earn-out payable    2,658,238
Total non-current liabilities    2,784,084
Total liabilities 11,100,319 7,966,303
Stockholders' equity (deficit)    
Common stock, $0.001 par value; 150,000,000 shares authorized; 23,218,117 and 22,754,308 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively 23,218 22,754
Additional paid-in capital 22,934,474 21,099,289
Accumulated deficit (29,527,425) (24,487,242)
Total stockholders' equity (deficit) (6,569,733) (3,365,199)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) $ 4,530,586 $ 4,601,104