Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net loss $ (14,556,885) $ (9,417,958)
Adjustments to reconcile net loss to net cash used for operating activities:    
Depreciation 79,232 187,749
Amortization of intangible assets 59,100 127,080
Loss on impairment 9,424 299,654
Loss on abandonment of license   147,826
Amortization of deferred financing costs 178,864 352,667
Amortization of debt discount   161,529
Provision for bad debt 58,617  
Stock-based compensation 671,887 495,077
Stock grant for service   21,375
Cancellation of shares   (14,999)
Interest added to note payable 3,783,443 780,252
Change in assets and liabilities:    
Accounts receivable (902,227) (252,435)
Inventory (247,329) (1,390,570)
Prepaid expenses and other (109,463) (53,757)
Accounts payable and accrued expenses 430,579 (105,348)
Deferred Revenue 100,000  
Net cash used for operating activities (10,444,758) (8,661,858)
Cash flows from investing activities:    
Purchase of property and equipment (178,776) (48,459)
Acquisition of intangible assets (65,189) (78,825)
Net cash used for investing activities (243,965) (127,284)
Cash flows from financing activities:    
Proceeds from issuance of note payable   15,961,294
Proceeds from issuance of common stock 16,777,746  
Repayments of long-term debt   (161,292)
Debt issuance costs   (1,309,834)
Proceeds from exercise of stock options 73,326 15,652
Merger   (58)
Net cash provided by financing activities 16,851,072 14,505,762
Net increase in cash and cash equivalents 6,162,349 5,716,620
Cash and cash equivalents, beginning of year 13,907,401 8,190,781
Cash and cash equivalents, end of period 20,069,750 13,907,401
Supplemental disclosures of cash flow activity:    
Cash paid for interest 1,030,219 649,108
Supplemental disclosure of non-cash investing and financing activities:    
Payments of fixed assets in accounts payable 173,611  
Payments of long term debt with proceeds from note payable   $ 4,838,706