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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flow from operating activities:    
Net loss $ (3,139,923) $ (6,360,781)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 73,191 69,704
Amortization of debt discount   298,400
Amortization of preferred stock discount 68,346 69,028
Loss on debt extinguishment   1,350,000
Change in fair value of 10% convertible preferred stock warrants (347,097) 487,555
Change in fair value of derivative liability 126,579 359,561
Share-based compensation 497,039 2,318,507
Increase in allowance for doubtful accounts 100,415  
Changes in operating assets and liability:    
Accounts receivable (247,973) (1,104,457)
Inventories (829,277) (313,182)
Prepaid expenses and deposits (20,868) (633,498)
Accounts payable 995,904 (37,872)
Accrued liabilities 128,973 (16,755)
Net cash used in operating activities (2,542,644) (3,435,727)
Cash flows from investing activities:    
Purchase of property and equipment (848,116) (97,250)
Net cash used in investing activities (848,116) (97,250)
Cash flows from financing activities:    
Proceeds from issuance of demand promissory notes 5,000,001  
Proceeds from issuance of 10% convertible preferred stock, net   6,769,389
Issuance of common stock, net of expenses   200
Proceeds from short term notes   100,758
Repayments of convertible debt (772,500)  
Repayment of revolving credit agreement (466,000)  
Repayment of short term notes   (32,970)
Net cash provided by financing activities 3,761,501 6,837,377
Net increase in cash 370,741 3,304,400
Cash and cash equivalents at beginning of period 1,982,772 785,612
Cash and cash equivalents at end of period 2,353,513 4,090,012
Supplemental disclosures of cash flow information:    
Cash paid for interest 133,549 63,707
Conversion of 10% convertible preferred stock and debt 262,500 410,000
Dividends on 10% convertible preferred stock 348,524 176,245
Amortization of conversion feature of 10% convertible preferred stock 474,680 31,311
Redeemable common stock reclassified to permanent equity 242,500  
Debt Conversion
   
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of debt discount   298,400
Revolving Credit Agreement
   
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of debt discount 305,206  
Conversion Options
   
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of derivative liability (113,271)  
Bonus Warrants
   
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of 10% convertible preferred stock warrants   797,185
Change in fair value of derivative liability (13,309) (359,561)
Supplemental disclosures of cash flow information:    
Warrants issued 57,034 114,049
10% Convertible Preferred Stock
   
Supplemental disclosures of cash flow information:    
Warrants issued $ 1,875,463