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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
OPERATING ACTIVITIES :    
Net loss $ (2,553,280) $ (3,214,281)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of intangible assets 356,687 612,632
Depreciation 225,691 227,665
Share-based compensation for stock and options issued to employees 16,494 83,023
Share-based compensation for options issued to non-employees 21,745 45,884
Amortization of debt discount on convertible notes 53,029 2,831
Amortization of deferred financing costs 20,151 0
Cancellation of warrants issued for services 0 (38,994)
Common stock issued for services 130,000 15,000
Common stock issued for interest due on convertible note 44,200 0
Change in operating assets and liabilities:    
Accounts receivable (6,621) 22,060
Other receivable 26,410 (8,996)
Inventory 152,243 (133,766)
Prepaid expenses and deferred charges 9,232 (25,800)
Notes receivable and accrued interest (31,997) 0
Accounts payable 353,346 657,920
Accrued liabilities 26,114 114,099
Accrued interest 23,027 6,373
Deferred revenue 195,837 81,651
Total 1,615,588 1,661,582
Net Cash Used in Operating Activities (937,692) (1,552,699)
INVESTING ACTIVITIES :    
Purchase of property and equipment (64,349) 0
Proceeds from sale of intangible asset 220,000 250,000
Net Cash Provided by Investing Activities 155,651 250,000
FINANCING ACTIVITIES :    
Proceeds from sale of common stock and warrants, net 0 411,990
Proceeds from sale of preferred stock, net 275,761 91,292
Proceeds from issuance of convertible notes and warrants, net 467,290 265,000
Offering cost adjustment - preferred stock sale in 2011 28,927 0
Cash paid in lieu of fractional shares 0 (35)
Net Cash Provided by Financing Activities 771,978 768,247
Net Decrease in Cash (10,063) (534,452)
Cash, beginning of period 46,620 641,441
Cash, end of period 36,557 106,989
SUPPLEMENTAL CASH FLOW DISCLOSURE:    
Cash paid for interest 3,747 2,386
Non-cash investing and financing activities:    
Issuance of common stock for promissory note 245,818 323,182
Issuance of common stock for principle due on convertible note $ 39,133 $ 0