Quarterly report pursuant to sections 13 or 15(d)

Consolidated Statements of Cash Flows (unaudited)

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Consolidated Statements of Cash Flows (unaudited) (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash Flows from Operating Activities:    
Net Loss $ (854,162) $ (945,865)
Adjustments to reconcile net loss to net cash provided in operating activities:    
Depreciation Expense 12,470 2,595
Amortization Expense 12,069 36,577
Imputed Interest Expense 7,163 0
Accretion of Discount on Convertible Debentures 0 81,121
Issuance of Common Stock for Interest Expense 0 40,000
Stock Compensation Expense 0 58,279
Prepaid Consulting Service Expense 29,252 0
(Gain) Loss on Conversion of Accounts Payable 4,072 0
(Gain) Loss on Settlement or Extinguishment of Debt (43,926) 0
(Gain) Loss on Derivative Valuation 0 92,862
(Gain) Loss on Distribution Contracts (2,771) 0
Decrease (increase) in operating assets:    
Accounts Receivable 597,537 526,901
Inventory (40,197) (18,874)
Prepaid Expenses & Other Assets 10,053 29,525
Film and Television Costs, net (89,819) 0
Increase (decrease) in operating liabilities:    
Accounts Payable (169,968) (87,674)
Accrued Salaries 12,857 98,908
Accrued Interest - Related Party 0 6,724
Other Accrued Expenses 39,224 (147,242)
Net cash provided/(used) in operating activities (476,146) (226,163)
Cash Flows from Investing Activities:    
Investment in Intangible Assets (50,000) (73,689)
Investment in Capitalized Product Development (12,455) 0
Net cash provided/(used) by investing activities (62,455) (73,689)
Cash Flows from Financing Activities:    
Sale of Common Stock, net of offering costs 355,116 0
Proceeds from Services Advance 750,000 0
Issuance Costs on Debenture 0 32,139
Payments of Related Party Notes (100,872) 0
Net cash provided/(used) by financing activities 1,004,244 32,139
Net increase in Cash and Cash Equivalents 465,643 (267,713)
Beginning Cash and Cash Equivalents 527,110 447,548
Ending Cash and Cash Equivalents 992,753 179,835
Supplemental disclosures of cash flow information:    
Cash paid for income taxes 0 0
Cash paid for interest 0 0
Schedule of non-cash financing and investing activites:    
Common Stock issued as Settlement for Accounts Payable 32,572 0
Common Stock issued for Prepaid Services $ 33,748 $ 0