Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows

Statements of Cash Flows (USD $)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:    
Net loss $ (12,989,419) $ (11,101,620)
Adjustments to reconcile net loss to net cash used in operating activities:    
Technology access fee paid in common stock and convertible note payable to shareholder 6,000,000 5,798,001
Accretion of discount on notes payable to shareholder   483,559
Depreciation and amortization 64,042 55,793
Stock-based compensation expense 1,624,165 1,057,218
Write off of expired inventory (240,005)  
Changes in operating assets and liabilities:    
Accounts receivable, net 10,917 20,265
Inventory, net 140,865 195,643
Prepaid expenses and other current assets 151,861 11,843
Accounts payable and accrued expenses (280,353) (104,556)
Deferred revenue (27,278) 112,879
Net cash used in operating activities (5,545,205) (3,470,975)
Cash flows from investing activities:    
Purchase of property and equipment (17,649)  
Net cash used in investing activities (17,649)  
Cash flows from financing activities:    
Borrowings under note payable to shareholder   2,500,000
Borrowings under convertible secured note payable to shareholder   750,000
Payments on short-term notes payable (96,788) (99,514)
Payment of income taxes associated with stock based compensation   (127,291)
Net proceeds from issuance of common stock 3,939,800 11,913,442
Restricted cash released 61,763 120,374
Net cash provided by financing activities 3,904,775 15,057,011
Net increase (decrease) in cash and cash equivalents (1,658,079) 11,586,036
Cash and cash equivalents at beginning of period 9,925,967 171,739
Cash and cash equivalents at end of period 8,267,888 11,757,775
Supplemental disclosure of cash flow information:    
Interest paid 3,108 2,936
Non-cash investing and financing activities:    
Borrowings under short term notes payable for prepaid expense 157,031 134,914
Par value of common stock issued for cashless exercise of warrants 106  
Conversion of convertible note payable and accrued interest to common shares and warrants   11,275,196
Discount on note payable to shareholder for warrants issued   483,559
Par value of forfeited stock   $ 5
Griffin Securities Inc. [Member]
Non-cash investing and financing activities:    
Fair market value of the 771,169 warrants issued to Griffin Securities, Inc. as a reduction in paid in capital from issuance of common stock   $ 1,850,806