Annual report pursuant to section 13 and 15(d)

Prepaid and Other Current Assets

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Prepaid and Other Current Assets
 12 Months Ended
Dec. 31, 2012
Prepaid and Other Current Assets [Abstract]  
PREPAID AND OTHER CURRENT ASSETS
3.         PREPAID AND OTHER CURRENT ASSETS
 
Prepaid and other current assets consist of the following at:
 
   
December 31, 2012
    
December 31, 2011
  
Prepaid consulting fees
  
$
181,849
    
$
147,648
  
Prepaid compensation
    
311,090
      
-
  
Receivable from Target
    
34,475
      
-
  
Sundry prepaid expenses and other current assets
    
43,695
      
9,610
  
  Subtotal
    
571,109
      
157,258
  
Less: non current portion
    
(213,797
)     
    
( -
)
Prepaid and other current assets
  
$
357,312
    
$
157,258
  
 
On October 22, 2012, the Company entered into a one year agreement with a firm to provide consulting services which included business development and capital raising functions.  As consideration for such services, the firm received 150,000 shares of the Company’s common stock valued at $225,000 on the date of issuance.  As of December 31, 2012, the prepaid portion of those services was $181,849.
 
On December 6, 2012, the Company retained an individual to serve as chairman of the Company’s Board of Directors for three years.  As part of the chairman’s compensation, the Company issued to him 200,000 shares of the Company’s common stock valued at $316,000.  As of December 31, 2012, the prepaid portion of the compensation was $311,090.
 
As part of its due diligence of a target acquisition company (“Target”), the Company requested that the Target retain the services of its independent registered accounting firm (“Auditor”) to perform an audit of the Target. The Company guaranteed the audit fee of the audit to the Auditor up to a maximum of $75,000.  As of December 31, 2012, we had recorded a receivable from the Target of $34,475 and a corresponding payable to the Auditor in conjunction with the audit.