Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:    
Net loss $ (1,162,714) $ (1,011,565)
Adjustments to reconcile net loss to net cash used in operating activities:    
Other than temporary decline in value of available-for-sale securities 147,973 40,386
Bad debt expense - related party 750 24,907
Non-controlling interest (101,307) (18,353)
Consulting and other services rendered in exchange for investment securities (1,500) (33,000)
Depreciation and amortization 79,542 11,079
Equity in (earnings) loss of investments 76,113 (58,337)
Asset impairment 0 250,000
Common stock issued for services 74,573 49,375
(Gain) loss on sale of investments (94,353) (106,035)
Beneficial converstion feature of convertible notes payable 0 56,660
Revaluation of equity investment prior to acquisitions 74,362 0
Amortization of warrants 35,247 0
(Increase) decrease in amounts due from affiliate (54,217) (46,547)
(Increase) decrease in accounts receivable (81,528) (4,258)
(Increase) decrease in other receivable (42,109) 0
(Increase) decrease in prepaid expenses and other assets (58,690) 0
(Increase) decrease in inventory (36,676) 0
Increase (decrease) in accounts payable and accrued expenses (30,701) 89,807
Increase (decrease) in deferred rent 20,308 0
Increase (decrease) in deferred revenue (1,750) (19,083)
Advance from related parties for working capital 0 14,650
Net cash used by operating activities (1,156,677) (760,314)
Cash flows from investing activities:    
Proceeds from sale of investments 190,325 281,765
Investment distribution 8,140 16,137
Purchase of investments (1,502,247) (26,334)
Franchise cost (75,000) 0
Purchase of property and equipment (219,811) (4,517)
Treasury stock proceeds (acquired) 26,400 (680)
Deposit made for investment 0 (20,000)
Net cash provided (used) by investing activities (1,572,193) 246,371
Cash flows from financing activities:    
Proceeds from sale of common stock 500 0
Proceeds from sale of common stock warrants, net 20,608 0
Loan proceeds 2,790,000 541,000
Loan repayment (7,036) (4,500)
Capital lease payments (13,970) 0
Other liabilities 62,262 0
Loans to related parties 0 (48,924)
Loan from related party 0 70,000
Net cash provided by financing activities 2,852,364 557,576
Effect of exchange rate changes on cash (4,372) 0
Net increase in cash and cash equivalents 119,122 43,633
Cash and cash equivalents, beginning of year 46,007 2,374
Cash and cash equivalents, end of year 165,129 46,007
Supplemental cash flow information:    
Interest 101,479 31,999
Income taxes 0 0
Non-cash investing and financing activities:    
Common stock issued for amounts due related party 0 58,790
Common stock issued for accounts payable 0 17,500
Reclassification of investment accounted for under the cost method as available-for-sale security 0 100,000
Due to related party exchanged for convertible note payable 25,000 0
Convertible notes payable exchanged for common stock 711,500 0
Accrued interest exchanged for common stock 10,000 0
Investment contributed by the Company's CEO 125,331 0
Common stock issued for prepaid consulting contract 44,850 0
Acquisition of subsidiaries:    
Current assets, excluding cash and cash equivalents 138,801 0
Property and equipment and intangible assets 1,985,799 0
Total assets excluding cash and cash equivalents 2,124,600 0
Liabilities assumed 953,917 0
Non-controlling interest 645,436 0
Prior investment of the Company 320,247 0
Acquisition of subsidiaries 1,919,600 0
Purchase price, net assets acquired - cash paid $ 205,000 $ 0