EC Development, Inc.

CIK:0000761034|SEC Filings

STATEMENT OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
STATEMENT OF OPERATIONS (Unaudited) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues	$ 79,017	$ 153,657	$ 530,060	$ 268,291
Cost of revenues	30,687	31,699	164,001	32,577
Gross Margin	48,330	121,958	366,059	235,714
Operating Expenses
Compensation expense	135,232	132,580	381,674	495,529
Amortization and depreciation	254,052	286,649	762,156	794,754
General & administrative expenses	109,631	86,841	414,344	251,983
Stock based compensation		12,500		12,500
Forgiveness of debt		15,000		15,000
Gain on settlement of debt			(120,000)
Interest expense	8,376	7,745	261,181	21,846
Total Operating Expenses	507,291	541,315	1,699,355	1,591,612
Net loss	$ (458,961)	$ (419,357)	$ (1,333,296)	$ (1,355,898)
Net loss per share - basic and diluted (in Dollars per share)	$ (0.02)	$ (0.02)	$ (0.05)	$ (0.05)
Weighted average common shares outstanding - basic and diluted (in Shares)	27,705,451	26,802,708	27,195,666	26,227,051

STATEMENT OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
STATEMENT OF CASH FLOWS (Unaudited) (USD $)	Sep. 30, 2012	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,333,296)	$ (1,355,898)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	762,156	794,754
Stock issued for interest	243,500
Stock issued for note payable	(120,000)	12,500
Changes in assets and liabilities:
Accounts receivable	(340,843)	13,998
Prepaid expenses	(3,262)
Security deposit	(100)
Accounts payable and accrued expenses	(57,371)	149,472
Deferred revenue	447,500
Net cash used in operating activities	(401,716)	(385,174)
CASH FLOWS FROM FINANCING ACTIVITIES
Sales of common stock	1,050,000	91,000
Sales of warrants		698,600
Purchase and cancellation of common stock	(503,735)
Decrease in loan payable - stockholder/officer		(153)
Proceeds from note payable	175,000	50,000
Distributions due to LLC members		(100,000)
Decrease in note payable - related party	(96,686)	(44,761)
Payments of notes payable	(222,114)	(254,788)
Net cash provided by financing activities	402,465	439,898
Net increase (decrease) in cash	749	54,724
Cash, beginning of period	614	1,940
Cash, end of period	1,363	56,664
Supplemental disclosures of cash flow information:
Cash paid for interest	20,196	20,844
Summary of non-cash financing transactions:
Common stock in settlement of note payable and interest	56,000
Common stock for settlement of distributions due to LLC members	$ 37,303

BALANCE SHEET (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current Assets
Cash	$ 1,363	$ 614
Accounts receivable	528,735	187,892
Prepaid expenses	3,262
Other current assets	100
Total current assets	533,460	188,506
Fixed assets - net	122,279	132,116
Intangible assets -software	4,750,000	5,500,000
Deferred patent costs	35,304	37,623
TOTAL ASSETS	5,441,043	5,858,245
Current liabilities
Accounts payable and accrued expenses	502,025	567,896
Distributions due to LLC members		139,378
Current portion of long-term debt	521,294	398,446
Note payable - related party	15,000	15,000
Loan payable - related party		96,686
Deferred revenue	447,500
Total current liabilities	1,485,819	1,217,406
Long-term debt	385,367	596,829
TOTAL LIABILITIES	1,871,186	1,814,235
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value, 20,000,000 shares authorized; none issued	0	0
Common stock, $.001 par value, 100,000,000 shares authorized; 27,705,451 and 26,825,194 issued and outstanding as of September 30, 2012 (Unaudited) and December 31, 2011, respectively	27,705	26,825
Additional paid-in capital	14,038,127	13,161,939
Accumulated deficit	(10,495,975)	(9,144,754)
TOTAL STOCKHOLDERS' EQUITY	3,569,857	4,044,010
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 5,441,043	$ 5,858,245