Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:    
Net loss $ (9,219,220) $ (5,423,161)
Adjustments to reconcile net loss to net cash used for operating activities:    
Depreciation 273,528 306,319
Amortization of intangible assets 67,147 46,828
Amortization of deferred financing costs 1,223,126 1,322,413
Amortization of debt discount 23,643 108,580
Stock-based compensation 250,044 187,458
Directors stock compensation 15,000  
Gain on termination of distribution agreement   (1,119,094)
Change in fair value of warrant liability (62,305) (78,306)
Interest added to note payable 55,562  
Change in assets and liabilities:    
Accounts receivable (368,954) (114,242)
Inventory 142,249 671,822
Prepaid expenses and other 20,070 37,732
Accounts payable and accrued expenses 500,820 110,152
Net cash used for operating activities (7,079,290) (3,943,499)
Cash flows from investing activities:    
Purchase of property and equipment (20,610)  
Acquisition of intangible assets (68,856) (72,005)
Cash acquired with Merger 7,201,638  
Net cash provided by (used for) investing activities 7,112,172 (72,005)
Cash flows from financing activities:    
Proceeds from issuance of Series D preferred stock and warrants, net   1,980,332
Proceeds from issuance of long-term debt 10,500,000 3,697,547
Proceeds from issuance of common stock 1,000,000  
Repayments of long-term debt (4,732,857)  
Debt issuance costs (434,772) (150,051)
Proceeds from exercise of stock options 26,480 3,923
Net cash provided by financing activities 6,358,851 5,531,751
Net increase in cash and cash equivalents 6,391,733 1,516,247
Cash and cash equivalents, beginning of year 1,799,048 282,801
Cash and cash equivalents, end of period 8,190,781 1,799,048
Supplemental disclosures of cash flow activity:    
Cash paid for interest 1,029,753 812,104
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   2,160,879
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  
Directors stock compensation included in prepaid expenses 60,000  
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 220,444 297,982
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 292,330 483,725
Series C preferred stock
    
Supplemental disclosure of non-cash investing and financing activities:    
Accretion of dividends preferred stock $ 515,577 $ 784,655