Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF OPERATIONS

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 24 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Revenue $ 572,049 $ 32,522 $ 1,139,858
Cost of goods sold 406,125 18,057 826,002
Gross profit 165,924 14,465 313,856
Operating expenses:      
Sales and marketing expenses 226,780 84,193 779,090
General and administrative 2,138,753 67,509 6,081,134
General and administrative - related party 0 39,846 167,021
Depreciation expense 16,534 1,849 60,755
Total operating expenses 2,382,067 193,397 7,088,000
Other income (expenses):      
Interest expense (2,524) (3,555) (14,896)
Interest expense on redeemable preferred stock (40,382) 0 (508,637)
Fees paid on credit line (7,057) 0 (15,660)
Placement agent fee to acquired credit line 0 0 (10,000)
Amortization of debt discount (414,370) 0 (521,902)
Other expenses (11) 0 (6,117)
Other income - related party 0 0 40,029
Loss on sales leaseback (20,773) 0 (20,773)
Change in derivative liability 264,051 0 881,990
Total other expense (221,066) (3,555) (175,966)
Net loss $ (2,437,209) $ (182,487) $ (6,950,110)
Weighted average number of common shares outstanding - basic 94,019,973 78,156,409  
Net loss per share - basic $ (0.03) $ 0.00