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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Cash flows from operating activities:    
Net loss $ (2,380) $ (3,282)
Adjustments to reconcile net loss to net cash used for operating activities:    
Depreciation and amortization 494 579
Amortization of debt discount and deferred financing 0 1,312
Stock-based employee compensation 406 56
Restricted stock expense 3 0
Series C Preferred Shares issued for services 97 0
Warrants issued for services 9 0
Loss on derivative liability 6 (295)
Forfeiture of restricted stock issued in lieu of salary (16) 0
Changes in operating assets and liabilities:    
Accounts receivable, net (109) 168
Prepaid expenses and other assets 13 38
Accounts payable (43) 339
Accrued Compensation (187) 32
Other accrued liabilities 42 33
Deferred revenue (135) (106)
Net cash used in operating activities (1,800) (1,126)
Cash flows from investing activities:    
Acquisition of property and equipment (13) (3)
Capitalized software development costs (37) (285)
Net cash used in investing activities (50) (288)
Cash flows from financing activities:    
Net proceeds from issuance of debt 0 960
Net proceeds from issuance of Series C preferred shares 686 0
Net cash provided by financing activities 686 960
Net decrease in cash and cash equivalents (1,164) (454)
Cash and cash equivalents at beginning of period 1,879 1,021
Cash and cash equivalents at end of period 715 567
Supplemental disclosure of cash flow information:    
Interest paid 0 0
Income tax paid 0 0
Non-cash financing and investing transactions:    
Issuance of long-term debt for payment of interest in kind 0 208
Accretion of beneficial conversion feature on Preferred Shares 902 0
Issuance of preferred shares by payment of dividends in kind 486 30
Warrants issued for interest recorded as derivative liability 0 170
Warrants issued in connection with Bridge Loans recorded as derivative liability $ 0 $ 622