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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended 41 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (3,374,249) $ (2,236,866) $ (8,026,303)
Common shares issued for services 0 0 71,000
Compensation cost for stock options granted 96,251 111,288 266,703
Loss on reduction of inventory to LCM 29,884 0 121,910
Loan initiation fee accrued for notes payable 0 0 2,000
Depreciation and amortization 25,586 6,420 41,208
Adjustments to reconcile net loss to net cash provided by operating activities:      
Increase in accounts receivable (174,183) 0 (175,407)
Increase in inventory (29,884) 0 (121,910)
Increase in prepaid expenses (8,791) (41,946) (39,975)
Increase in security deposits (30,589) (2,200) (37,946)
Increase (decrease) in accounts payable 7,335 (1,500) 72,101
Decrease in accrued payroll 0 (278,571) 0
Increase (decrease) in accrued expenses 1,491,014 (10,392) 1,933,342
Net cash used in operating activities (1,967,626) (2,453,767) (5,893,277)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of furniture & fixtures 0 (35,776) (86,465)
Purchase of software 0 (49,500) (50,466)
Net cash used in investing activities 0 (85,276) (136,931)
CASH FLOWS FROM FINANCING ACTIVITIES      
Net proceeds from issuance of common stocks and warrants 400,000 5,713,785 6,370,325
(Repayments of) Proceeds from bank line of credit (750,000) 1,000,000 250,000
Proceeds from (repayments of) loans from related parties 75,375 (179,000) 78,453
Cash released from (restricted for) commercial line of credit 750,000 (1,000,000) (250,000)
Net cash provided by financing activities 475,375 5,534,785 6,448,778
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS (1,492,251) 2,995,742 418,570
CASH & CASH EQUIVALENTS, BEGINNING BALANCE 1,910,821 10,253 0
CASH & CASH EQUIVALENTS, ENDING BALANCE 418,570 3,005,994 418,570
SUPPLEMENTAL DISCLOSURES:      
Interest paid 13,892 5,389 19,281
Income taxes paid 0 0 250
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Common stock and warrants issued for assets purchase 4,674,853 0 0
Options issued for previously accrued director compensation $ 45,000 $ 0 $ 0