Annual report pursuant to Section 13 and 15(d)

Statements of Cash Flows

v2.4.0.8
Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net loss $ (16,068,754) $ (13,090,446)
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  
Non-cash services paid in common stock   5,798,001
Accretion of discount on notes payable to shareholder   483,559
Depreciation and amortization 76,487 75,190
Stock-based compensation expense 3,449,650 1,280,642
Changes in operating assets and liabilities:    
Accounts receivable, net 5,361 22,849
Inventory, net (164,205) 351,414
Prepaid expenses and other current assets 203,601 26,407
Accounts payable and accrued expenses (234,523) (57,500)
Deferred revenue (32,150) (101,973)
Net cash used in operating activities (6,764,533) (5,211,857)
Cash flows from investing activities:    
Purchase of property and equipment (18,809) (11,095)
Net cash used in investing activities (18,809) (11,095)
Cash flows from financing activities:    
Exercise of common stock options 39,800  
Borrowings under note payable to shareholder   750,000
Borrowings under convertible secured note payable to shareholder   2,500,000
Payments on short-term notes payable (140,931) (140,029)
Payment of income taxes associated with stock based compensation (631,743) (224,324)
Net proceeds from issuance of common stock 13,804,996 11,888,336
Restricted cash released 61,763 203,197
Net cash provided by financing activities 13,133,885 14,977,180
Net increase (decrease) in cash and cash equivalents 6,350,543 9,754,228
Cash and cash equivalents at beginning of period 9,925,967 171,739
Cash and cash equivalents at end of period 16,276,510 9,925,967
Supplemental disclosure of cash flow information:    
Interest paid 3,108 3,881
Non-cash investing and financing activities:    
Conversion of convertible note payable and accrued interest to common shares 1,969,040  
Borrowings under short term notes payable for prepaid expense 157,005 134,914
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
Fair market value of the 771,169 warrants issued to Placement Agent as a reduction in paid in capital from issuance of common stock   1,939,728
Griffin Securities Inc. [Member]
    
Non-cash investing and financing activities:    
Fair market value of the 771,169 warrants issued to Placement Agent as a reduction in paid in capital from issuance of common stock   $ 1,850,806