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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:  
Net loss$ (3,224)$ (4,377)
Adjustments to reconcile net loss to net cash used for operating activities:  
Depreciation and amortization663876
Amortization of debt discount and deferred financing01,776
Stock-based employee compensation61373
Restricted stock expense324
Series C Preferred Shares issued for services19566
Gain on derivative liability(24)(761)
Non-cash financing expense0273
Forfeiture of restricted stock issued in lieu of salary(16)0
Changes in operating assets and liabilities:  
Accounts receivable, net(452)185
Prepaid expenses and other assets12(19)
Accounts payable(197)127
Accrued Compensation(197)(40)
Other accrued liabilities3971
Deferred revenue(161)(117)
Net cash used in operating activities(2,746)(1,843)
Cash flows from investing activities:  
Acquisition of property and equipment(13)(12)
Capitalized software development costs(72)(539)
Net cash used in investing activities(85)(551)
Cash flows from financing activities:  
Net proceeds from issuance of debt6001,240
Net proceeds from issuance of Series B preferred shares0925
Net proceeds from issuance of Series C preferred shares6860
Net cash provided by financing activities1,2862,165
Net decrease in cash and cash equivalents(1,545)(229)
Cash and cash equivalents at beginning of period1,8791,021
Cash and cash equivalents at end of period334792
Supplemental disclosure of cash flow information:  
Interest paid00
Income tax paid00
Non-cash financing and investing transactions:  
Series C Preferred Shares issued in separation agreement360
Long-term notesn and accrued interest exchanged for Series B convertible preferred stock06,608
Conversion feature of Series B preferred shares classified as derivative liability02,000
Conversion feature of Series B preferred shares dividends issued as payment in-kind classified as derivative liability027
Accretion of beneficial conversion feature on Preferred Shares9290
Issuance of preferred shares by payment of dividends in kind796172
Warrants issued as payment of financing services0143
Warrants issued in connection with bridge loans recorded as derivative liability0682
Warrants issued for interest recorded as derivative liability$ 0$ 170