Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v2.3.0.15
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:    
Net loss $ (7,082,234) $ (2,642,809)
Adjustments to reconcile net loss to net cash used for operating activities:    
Depreciation and amortization 214,919 230,963
Amortization of intangible assets 36,265 34,706
Amortization of deferred financing costs 1,200,413 134,808
Amortization of debt discount 11,436 25,732
Stock-based compensation 97,499 198,000
Gain on termination of distribution agreement   (1,119,094)
Change in fair value of warrant liability (62,305) 77,695
Interest added to note payable 55,562  
Change in assets and liabilities:    
Accounts receivable (109,409) (90,754)
Inventory 240,446 45,112
Prepaid expenses and other (66,276) (16,228)
Accounts payable and accrued expenses 572,833 (114,763)
Net cash used for operating activities (4,890,851) (3,236,632)
Cash flows from investing activities:    
Purchase of property and equipment (7,858)  
Acquisition of intangible assets (45,454) (57,256)
Cash acquired with Merger 7,201,638  
Net cash provided by (used) for investing activities 7,148,326 (57,256)
Cash flows from financing activities:    
Proceeds from issuance of Series D preferred stock and warrants, net   1,998,000
Proceeds from issuance of long-term debt 10,500,000 1,316,536
Proceeds from issuance of common stock 1,000,000  
Repayments of long-term debt (4,732,857)  
Debt issuance costs (301,778) (96,121)
Proceeds from exercise of stock options 3,649  
Net cash provided by financing activities 6,469,014 3,218,415
Net increase (decrease) in cash and cash equivalents 8,726,489 (75,473)
Cash and cash equivalents, beginning of year 1,799,048 282,801
Cash and cash equivalents, end of period 10,525,537 207,328
Supplemental disclosures of cash flow activity:    
Cash paid for interest 611,501 539,387
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of preferred stock, convertible debt and accrued interest into common stock 21,497,955 8,328,274
Deferred financing costs related to warrants issued with debt   1,492,241
Preferred stock dividend payable forfeited with the Merger 7,076,729  
Warrant Liability forfeited with the Merger 2,607,510  
Debt discount related to warrants issued with debt 173,736  
Net assets acquired on Merger 11,847,916  
Note and accrued interest retired with the Merger 4,555,562  
Reclassification from common stock to additional paid in capital for change in par value 11,639  
Series D preferred stock
    
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of convertible debt into Series D preferred stock   2,690,994
Accretion of dividends preferred stock 220,444 230,914
Warrants issued with Series D preferred stock   517,529
Series B preferred stock
    
Supplemental disclosure of non-cash investing and financing activities:    
Accretion of dividends preferred stock 292,330 458,630
Series C preferred stock
    
Supplemental disclosure of non-cash investing and financing activities:    
Accretion of dividends preferred stock $ 515,577 $ 717,981