Quarterly report pursuant to sections 13 or 15(d)

CONSOLIDATED BALANCE SHEETS

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CONSOLIDATED BALANCE SHEETS (USD $)
Mar. 31, 2013
Dec. 31, 2012
Assets    
Cash and cash equivalents $ 479,344 $ 577,238
Restricted cash 265,131 264,992
Accounts receivable, net of allowance of $57,535 and $35,535, respectively 327,015 239,671
Prepaid expenses 157,583 192,533
Net assets from discontinued operations (Note 1) 183,747 393,214
Other current assets    69,000
Total current assets 1,412,820 1,736,648
Call center equipment 121,313 121,313
Computer and office equipment 61,037 45,718
Furniture and fixtures 32,914 11,336
Library (online) 100,000 100,000
Software 1,491,035 1,388,824
Total 1,806,299 1,667,191
Less accumulated depreciation and amortization (541,216) (455,871)
Total property and equipment, net 1,265,083 1,211,320
Courseware, net 218,559 253,571
Accounts receivable, secured - related party, net of allowance of $502,315 270,478 270,478
Other assets 25,181 25,181
Total assets 3,192,121 3,497,198
Liabilities and Stockholders' Equity    
Accounts payable 258,409 215,796
Accrued expenses 97,380 75,912
Deferred revenue 1,142,195 1,036,540
Convertible notes payable, current portion (includes $50,000 to related parties) 200,000   
Loan payable to stockholder 491 491
Deferred rent, current portion 7,844 6,257
Net liabilities from discontinued operations (Note 1) 125,132 226,430
Other current liabilities    69,000
Total current liabilities 1,831,451 1,630,426
Line of credit 250,250 250,000
Convertible notes payable (includes $600,000 and $650,000, respectively, to related parties) 600,000 800,000
Deferred rent 20,319 15,017
Total liabilities 2,702,020 2,695,443
Stockholders' equity:    
Preferred stock, $0.001 par value; 10,000,000 shares authorized      
Common stock, $0.001 par value; 120,000,000 shares authorized, 56,858,005 issued and 56,658,005 outstanding at March 31, 2013 and 55,243,719 issued and 55,043,719 outstanding at December 31, 2012 56,858 55,244
Additional paid-in capital 12,789,218 12,153,615
Treasury stock (200,000 shares) (70,000) (70,000)
Accumulated deficit (12,285,975) (11,337,104)
Total stockholders' equity 490,101 801,755
Total liabilities and stockholders' equity $ 3,192,121 $ 3,497,198