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 134 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (10,782,168) $ (8,796,974) $ (51,059,568)
Adjustments to reconcile net loss to cash used in operating activities:      
Depreciation and amortization 424,758 497,253 3,338,049
Stock-based compensation 2,323,233 1,503,297 6,681,403
Intrinsic value of beneficial conversion feature associated with convertible debt 0 0 471,765
Issuance of stock for technology and services 0 0 89,520
Impairment of intangible assets 0 0 19,671
Loss on disposal of fixed assets 7,523 0 44,000
(Gain) loss on derivative warrants (2,373,941) 33,854 (2,327,929)
Loss on issuance of derivative warrants 744,957 0 744,957
Changes in:      
Prepaid expenses and other current assets 48,056 (72,426) (263,167)
Accounts payable and accrued liabilities 445,108 238,949 781,969
Accrued interest 0 0 463,722
Deferred rent 7,830 11,023 143,234
Cash used in operating activities (9,154,644) (6,585,024) (40,872,374)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash acquired in a business combination 0 0 905,649
Purchases of fixed assets (147,812) (97,691) (5,732,095)
Proceeds from sale of fixed assets 0 0 7,000
Purchases of short-term certificates of deposit 0 0 (5,500,730)
Proceeds from short-term certificates of deposit 0 0 5,500,730
Change in restricted cash 2,000,000 (2,000,000) (55,000)
Payment for intangible assets 0 0 (19,671)
Cash provided by (used in) investing activities 1,852,188 (2,097,691) (4,894,117)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of convertible notes 0 0 2,720,985
Proceeds from long-term obligations 0 0 1,677,945
Payments on long-term obligations 0 0 (1,227,944)
Payments on capital lease obligations (2,397) (2,235) (9,280)
Proceeds from issuance of common stock and warrants, net of issuance costs 4,975,153 6,838,774 43,688,181
Proceeds from exercise of warrant 0 1,088,300 1,338,300
Repurchase of common stock 0 0 (31,667)
Cash in lieu of fractional shares in a business combination 0 0 (145)
Change in deferred financing costs 70,539 (70,539) 28,500
Cash provided by financing activities 5,043,295 7,854,300 48,184,875
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (2,259,161) (828,415) 2,418,384
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,677,545 5,505,960 0
CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,418,384 4,677,545 2,418,384
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION      
Interest paid 0 0 208,689
Fair value of warrants classified as a derivative liability 5,720,000 0 5,720,000
Fair value of derivative warrants reclassified to additional paid-in capital upon cashless exercise 0 43,855 92,194
Issuance of common stock in connection with the conversion of notes payable and accrued interest 0 0 3,184,707
Fair value of assets acquired in exchange for securities in a business combination 0 0 78,407
Fair value of liabilities assumed in exchange for securities in a business combination 0 0 (439,615)
Goodwill resulting from a business combination $ 0 $ 0 $ 1,675,462