Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) (USD $)
 3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash flows from operating activities:    
Net loss $ (1,589,960) $ (1,616,908)
Adjustments to reconcile net loss to net cash used in operating activities:    
Accretion of discount on notes payable to shareholder   7,463
Depreciation and amortization 20,972 19,565
Stock-based compensation expense 7,615 261,403
Changes in operating assets and liabilities:    
Accounts receivable, net 14,365 29,330
Inventory, net 6,912 112,607
Prepaid expenses and other current assets 61,376 39,516
Accounts payable and accrued expenses (75,306) 11,690
Deferred revenue (26,875) (7,766)
Net cash used in operating activities (1,580,901) (1,143,100)
Cash flows from financing activities:    
Borrowings under note payable to shareholder   1,250,000
Borrowings under convertible secured note payable to shareholder   750,000
Payments on short term notes payable (30,733) (31,551)
Restricted cash (receipts) released, net 35,992 (29,144)
Net cash provided by financing activities 5,259 1,939,305
Net increase (decrease) in cash and cash equivalents (1,575,642) 796,205
Cash and cash equivalents at beginning of period 9,925,967 171,739
Cash and cash equivalents at end of period 8,350,325 967,944
Supplemental disclosure of cash flow information:    
Interest paid 982 447
Non-cash investing and financing activities:    
Borrowings under short term notes payable for prepaid expense 50,037 50,037
Par value of common stock issued for cashless exercise of warrants 106  
Conversion of convertible note payable and accrued interest to common stock   8,737,011
Discount on note payable to shareholder for warrants   $ 483,559
Par value of forfeited stock   $ 5