Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

 v2.3.0.11
Consolidated Statements of Cash Flows (Unaudited) (USD $)
 2 Months Ended 6 Months Ended
Jun. 30, 2011
Jun. 30, 2011
Jun. 30, 2010
Cash flows from operating activities:      
Net loss $ (8,605,492) $ (14,501,285) $ (4,821,166)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation     1,034
Amortization of intangible asset     11
Amortization of prepaid expenses 50,776 96,343 7,058
Amortization of debt issuance costs 1,563 3,126 2,605
Amortization of debt discount 149,957 438,811 98,542
Impairment of mineral rights 500,000 500,000  
Impairment loss     173,257
Derivative liability expense     3,260,076
Change in fair value of derivative liabilities 7,594,470 13,062,181 (2,399,047)
Stock based consulting     2,612,500
Stock based compensation expense 83,034 83,034 807,292
Gain from settlement of debt   (28,244)  
(Increase) Decrease in:      
Interest receivable     (2,157)
Prepaid expense (13,305) (87,505) (188,200)
Deposits     (8,509)
Increase (Decrease) in:      
Accounts payable and accrued expenses 103,106 149,926 82,319
Unearned revenue     565
Liabilities of discontinued operations   (15,000)  
Net cash used in operating activities (135,891) (298,613) (373,820)
Cash flows from investing activities:      
Cash acquired in acquisition     9,518
Cash used in acquisition     (110,000)
Payment of leasehold improvement     (14,025)
Purchase of equipment     (23,451)
Investment in note receivable     (171,100)
Net cash used in investing activities     (309,058)
Cash flows from financing activities:      
Proceeds from issuance of stock 550,000 550,000  
Proceeds from exercise of stock warrants   125,000  
Net proceeds from debentures     937,500
Net cash provided by financing activities 550,000 675,000 937,500
Net increase (decrease) in cash 414,109 376,387 254,622
Cash, beginning of period 56,331 94,053  
Cash, end of period 470,440 470,440 254,622
Cash paid during the period for:      
Interest      
Income taxes      
Supplemental disclosure of non-cash investing and financing activities:      
Issuance of common stock in connection with acquisition of business     800,000
Contributed capital in connection with an extinguishment of a convertible debenture 31,666 95,000  
Issuance of Common Stock for convertible debentures 125,000 375,000  
Issuance of Common Stock for accrued director's fees   10,000  
Reclassification of derivative liability to equity $ 1,511,016 $ 4,706,286