Annual report pursuant to Section 13 and 15(d)

Statements Of Cash Flows

v2.4.0.6
Statements Of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:    
Net loss $ (7,678,868) $ (7,805,165)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock retention awards 140,400  
Non-cash services paid in common stock   99,000
Depreciation and amortization 79,516 42,735
Stock-based compensation expense 1,262,217 667,222
Changes in operating assets and liabilities:    
Accounts receivable, net 30,328 39,841
Income tax receivable 362,218 (362,218)
Inventory, net (208,964) (134,516)
Prepaid expenses and other current assets 153,290 4,791
Accounts payable and accrued expenses 225,331 1,036,774
Deferred revenue 139,774 (36,898)
Net cash used in operating activities (5,494,758) (6,448,434)
Cash flows from investing activities:    
Purchase of property and equipment, net   (88,084)
Net cash used in investing activities   (88,084)
Cash flows from financing activities:    
Borrowings under note payable to shareholder   1,000,000
Borrowings under convertible revolving note payable to shareholder 5,500,000 2,000,000
Payments on short term notes payable (172,552) (107,314)
Net proceeds from issuance of common stock   1,500,000
Purchase of treasury stock (3,751)  
Restricted cash released from common stock proceeds 210,697 1,974,343
Net cash provided by financing activities 5,534,394 6,367,029
Net increase (decrease) in cash and cash equivalents 39,636 (169,489)
Cash and cash equivalents at beginning of year 132,103 301,592
Cash and cash equivalents at end of year 171,739 132,103
Interest paid 5,928 21,968
Non-cash investing and financing activities:    
Borrowings under short term notes payable for prepaid expense 126,738 63,835
Par value of restricted stock granted as stock compensation 140  
Common stock issued in exchange for cancellation of note payable to shareholder   1,000,000
Borrowings under short term notes payable for purchase of property and equipment   $ 107,373