For the year

ended

December 31,

2013

For the year

ended

December 31,

2012

For the period

from March 29,

2011 (date of

inception)

through

December 31,

2013

Cash paid for interest

$ 107,913

$ 178,316

$ 448,229   

Cash paid for income taxes

$ 100

$ 100

$ 200

Series C Dividend payable in accrued expenses

$ 22,668

$ 49,172

$ 22,668

Series D Dividend payable in accrued expenses

$ 44,018

$ --

$ 44,018

Non-Cash investing and financing transactions

Repayment of senior secured notes payable with issuance of Series D preferred shares

$ 749,982

$ --

$ 749,982

Financing the purchase of equipment under a 5 year loan agreement

$ 83,507

$ --

$ 83,507

Beneficial conversion feature on warrants issued in conjunction with Series D preferred shares

$ 176,729

$ --

$ 176,729