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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended 53 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (8,026,984) $ (3,374,249) $ (17,758,892)
Common shares issued for services 144,391 0 215,392
Compensation cost for stock options granted 1,187,717 96,251 1,479,981
Loss on reduction of inventory to LCM 0 29,884 121,910
Loan initiation fee accrued for notes payable 0 0 2,000
Depreciation and amortization 350,536 25,586 496,711
Contingent loss 402,840 0 402,840
Bad debt expense 228,841 0 228,841
Adjustments to reconcile net loss to net cash provided by operating activities:      
Increase in accounts receivable (386,514) (174,183) (528,179)
Increase in inventory 0 (29,884) (121,910)
Decrease (Increase) in prepaid expenses 71,439 (8,791) (51,194)
Increase in security deposits (43,160) (30,589) (79,608)
Decrease (Increase) in accounts payable (37,086) 7,335 31,131
Decrease in accrued payroll 149,493 0 149,493
Increase in deferred rent 60,753 0 60,753
Decrease (Increase) in accrued expenses (304,626) 1,491,014 1,322,756
Increase in other current liabilities 20,300 0 20,300
Net cash used in operating activities (6,182,060) (1,967,626) (14,007,675)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of furniture & fixtures (346,007) 0 (537,054)
Purchase of software (54,667) 0 (135,133)
Net cash used in investing activities (400,674) 0 (672,187)
CASH FLOWS FROM FINANCING ACTIVITIES      
Net proceeds from issuance of common stocks and warrants 12,551,098 400,000 22,375,423
Repayments of bank line of credit 0 (750,000) 0
Proceeds from (repayments of) loans from related parties 0 75,375 (2,000)
Cash released from commercial line of credit 0 750,000 0
Net cash provided by financing activities 12,551,098 475,375 22,373,423
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS 5,968,364 (1,492,251) 7,693,561
CASH & CASH EQUIVALENTS, BEGINNING BALANCE 1,725,197 1,910,821 0
CASH & CASH EQUIVALENTS, ENDING BALANCE 7,693,561 418,570 7,693,561
SUPPLEMENTAL DISCLOSURES:      
Interest paid 359 13,892 33,067
Income taxes paid 0 0 250
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Common stock and warrants issued for asset purchase 0 4,674,853 4,674,853
Options issued for previously accrued director compensation 0 45,000 45,000
Commitment shares distributed for capital contribution 2,387,250 0 2,387,250
Amortization of commitment shares issued for distributed shares $ 1,879,058 $ 0 $ 1,879,058