Basis of presentation

9 Months Ended

Sep. 30, 2011

Basis of presentation [Abstract]

Basis of presentation

Note 1 –Basis of presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim information.  The consolidated balance sheet at December 31, 2010 has been derived from the audited balance sheet at that date; however, the accompanying financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.  The results of operations for the interim periods shown in this report are not necessarily indicative of expected results for any future interim period or for the entire fiscal year.  We believe that the quarterly information presented includes all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation in accordance with accounting principles generally accepted in the United States.  The accompanying condensed consolidated financial statements and notes should be read in conjunction with our Form 10-K for the year ended December 31, 2010.

Correction of Immaterial Error

This Form 10-Q reflects a correction of an immaterial error in our Consolidated Balance Sheet as of December 31, 2010, our Consolidated Statement of Cash Flows for the year ended December 31, 2010 contained in our Form 10-K for the fiscal year ended December 31, 2010 filed on March 9, 2011, and our Consolidated Statement of Cash Flows for the nine months ended September 30, 2010 contained in our Form 10-Q for the nine months ended September 30, 2010 filed on November 5, 2010.

The effect of this correction on the Consolidated Balance Sheet as of December 31, 2010 is summarized in the following table:

	As of December 31, 2010
	Previously Reported		Adjustments			As Restated
Assets:
Cash and cash equivalents	$	77,102,618	$	(22,003,299	)	$	55,099,319
Short-term investments		12,013,707		22,003,299			34,017,006
Total cash, cash equivalents and short-term investments	$	89,116,325	$	-		$	89,116,325

      The effects of this correction on the Consolidated Statement of Cash Flow for the year ended December 31, 2010 are summarized in the following table:

	For the Year Ended December 31, 2010
	Previously
	Reported			Adjustments			As Restated
Cash Flows used in operating activities:
Amortization of investments	$	-		$	348,061		$	348,061
Changes in assets and liabilities - Other Current Assets		1,333,033			(92,142	)		1,240,891
Other cash flows used in operating activity items		(5,792,939	)		-			(5,792,939	)
Net cash used in operating activities	$	(4,459,906	)	$	255,919		$	(4,203,987	)
Cash Flows used in investing activities:
Purchases of property and equipment	$	(3,840,846	)	$	-		$	(3,840,846	)
Purchases of marketable securities		(12,032,241	)		-			(12,032,241	)
Purchases of short-term investments		(12,013,707	)		(22,259,218	)		(34,272,925	)
Proceeds from sale of marketable securities		2,125,000			-			2,125,000
Proceeds from sale of short-term investments		25,000,000			-			25,000,000
Net cash used in investing activities	$	(761,794	)	$	(22,259,218	)	$	(23,021,012	)
Net cash from financing activities	$	267,323		$	-		$	267,323
Effects of exchange rates on cash and cash equivalents	$	108,513			-		$	108,513
Net decrease in cash and cash equivalents	$	(4,845,864	)	$	(22,003,299	)	$	(26,849,163	)
Cash and cash equivalents, beginning of the period	$	81,948,482					$	81,948,482
Cash and cash equivalents, end of the period	$	77,102,618		$	(22,003,299	)	$	55,099,319

      The effects of this correction on the Consolidated Statement of Cash Flow for the nine months ended September 30, 2010 are summarized in the following table:

	For the Nine Months Ended September 30, 2010
	Previously
	Reported			Adjustments			As Restated
Cash Flows used in operating activities:
Amortization of investments	$	-		$	97,212		$	97,212
Changes in assets and liabilities - Other Current Assets		402,125			(352,239	)		49,886
Other cash flows used in operating activity items		(5,119,448	)		-			(5,119,448	)
Net cash used in operating activities	$	(4,717,323	)	$	(255,027	)	$	(4,972,350	)
Cash Flows used in investing activities:
Purchases of property and equipment	$	(3,592,144	)	$	-		$	(3,592,144	)
Purchases of short-term investments, marketable securities and other investments		(24,055,638	)		(22,259,218	)		(46,314,856	)
Proceeds from sale of short-term investments, marketable securities and other investments		26,850,000			-			26,850,000
Net cash used in investing activities	$	(797,782	)	$	(22,259,218	)	$	(23,057,000	)
Net cash from financing activities	$	95,145		$	-		$	95,145
Effects of exchange rates on cash and cash equivalents	$	95,163			-		$	95,163
Net decrease in cash and cash equivalents	$	(5,324,797	)	$	(22,514,245	)	$	(27,839,042	)
Cash and cash equivalents, beginning of the period	$	81,948,482					$	81,948,482
Cash and cash equivalents, end of the period	$	76,623,685		$	(22,514,245	)	$	54,109,440

      This correction to the 2010 presentation of approximately $22.0 million reflects the change in classification of a U.S. Treasury note with a maturity date of May 31, 2011 from cash and cash equivalents to short-term investments.  This $22.0 million U.S. Treasury note could have been sold without penalty at any time during the applicable period and the correction would have had no effect on our liquidity position during the period indicated.

There have been no recent accounting pronouncements or changes in accounting pronouncements during the three and nine months ended September 30, 2011, as compared to the recent accounting pronouncements described in the Company’s Form 10-K, that are of significance, or potential significance to the Company.