Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Revenues:        
Service revenue $ 315,931 $ 32,227 $ 571,590 $ 42,803
Grant and rebate revenue 596,009 32,750 658,642 37,749
Sales 61,328 12,762 98,721 12,762
TOTAL REVENUE 973,268 77,739 1,328,953 93,314
Costs of Revenues:        
Cost of services 770,299 42,309 1,305,907 46,718
Depreciation and amortization 755,133 0 1,501,010 0
Cost of sales 54,542 7,710 85,258 7,710
TOTAL COST of REVENUES 1,579,974 50,019 2,892,175 54,428
Gross profit (loss) (606,706) 27,720 (1,563,222) 38,886
Operating expenses:        
Compensation 2,254,760 3,287,420 4,075,487 4,305,473
Other operating expenses 376,758 141,494 779,621 274,344
General and administrative expenses 557,591 2,032,197 1,523,225 2,892,722
Impairment of goodwill 3,299,379    3,299,379   
Inducement expense for issuing financial support to Company 858,118 0 858,118 0
TOTAL OPERATING EXPENSES 7,346,606 5,461,111 10,535,830 7,472,539
Loss from operations (7,953,312) (5,433,391) (12,099,052) (7,433,653)
Other income (expense):        
Interest expense, net (11,537) (11,234) (45,868) (21,484)
Amortization of discount on convertible debt 0 (8,791) 0 (126,783)
Gain (Loss) on settlement of accounts payable for cash and common stock     21,000 (47,856)
Gain on settlement of accounts payable     15,789   
Loss on payment of convertible notes payable     0 (46,701)
Gain on change in fair value of warrant payable 474,800 0 968,200 0
Gain on change in fair value of derivative warrant liability 745,089 0 536,054 0
Inducement expense for partial extinguishment of derivative liabilities (368,688) 0 (368,688) 0
Provision for warrant liability 0 (187,000) 0 (187,000)
Total other income(expense) 839,664 (207,025) 1,126,487 (429,824)
Loss before income taxes (7,113,648) (5,640,416) (10,972,565) (7,863,477)
Income tax provision 0 0 0 0
Net loss $ (7,113,648) $ (5,640,416) $ (10,972,565) $ (7,863,477)
Net loss per common share- basic and diluted $ (0.09) $ (0.11) $ (0.14) $ (0.16)
Weighted average number of common shares - basic and diluted 77,697,633 51,321,981 77,633,227 48,428,883