Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
OPERATING ACTIVITIES    
Net Loss $ (476,362) $ (39,087)
Adjustments to reconcile net loss to net cash flows used in operating activities:    
Amortization 548,000 0
Depreciation 3,427 0
Amortization of debt discount 67,095 0
Change in operating assets and liabilities:    
Prepaid expenses 0 1,750
Prepaid inventory 66,164 0
Inventory (2,048,942) 0
Accounts receivable (1,265,295) 0
Accounts payable and accrued expenses 211,514 6,732
Net cash used in operating activities (2,894,399) (30,605)
INVESTING ACTIVITIES    
Cash received on acquisition 50,775 0
Purchase of equipment (201,199) 0
Cash paid on PhytoSPHERE agreement (950,000) 0
Investment in Kanalife (650,000) 0
Net cash used in investing activities (1,750,424) 0
FINANCING ACTIVITIES    
Proceeds from related party loans 0 29,600
Proceeds from loan from Roen Ventures, LLC 4,780,500 0
Proceeds from equipment loan, net of repayment 30,000 0
Repayment of loan from related party (200) 0
Net cash flows from financing activities 4,810,300 29,600
Net increase (decrease) in cash 165,477 (1,005)
Cash, beginning of period 431 1,168
Cash, end of period 165,908 163
NON CASH TRANSACTIONS:    
Value of debt discount 637,400 0
Accounts receivable assumed from acquisition 396,438 0
Inventory assumed from acquisition 345,477 0
Prepaid inventory assumed from acquisition 1,260,510 0
Property and equipment assumed from acquisition 1,288 0
Intangible assets 4,110,000 0
Goodwill 1,855,512 0
Amount due from PhytoSPHERE agreement (1,314,878) 0
Common Shares issued for PhytoSPHERE Transaction $ (5,755,122) $ 0