Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended 137 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (2,943,413) $ (3,453,879) $ (54,002,981)
Adjustments to reconcile net loss to cash used in operating activities:      
Depreciation and amortization 96,048 111,874 3,434,097
Stock-based compensation 262,526 425,898 6,943,929
Intrinsic value of beneficial conversion feature associated with convertible debt 0 0 471,765
Non-cash interest expense related to discount on convertible debt 19,052 0 19,052
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 2,269 4,513 46,269
(Gain) loss on revaluation of derivative warrants 54,945 (6,043) (2,272,984)
Loss on issuance of derivative warrants 0 744,957 744,957
Changes in:      
Prepaid expenses and other current assets 82,344 135,549 (180,823)
Accounts payable and accrued liabilities (169,751) 145,999 612,218
Accrued interest   0 463,722
Deferred rent 1,380 2,195 144,614
Cash used in operating activities (2,594,600) (1,888,937) (43,466,974)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash acquired in a business combination 0 0 905,649
Purchases of fixed assets (15,191) (92,977) (5,747,286)
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 0 121,740 (55,000)
Payment for intangible assets 0 0 (19,671)
Cash provided by (used in) investing activities (15,191) 28,763 (4,909,308)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of convertible notes 4,000,000 0 6,720,985
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 (626) (584) (9,906)
Proceeds from issuance of common stock, net of issuance costs 0 4,975,153 43,688,181
Proceeds from exercise of warrants 0 0 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 issuance costs 0 70,539 28,500
Cash provided by financing activities 3,999,374 5,045,108 52,184,249
INCREASE IN CASH AND EQUIVALENTS 1,389,583 3,184,934 3,807,967
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 2,418,384 4,677,545 0
CASH AND EQUIVALENTS AT END OF PERIOD 3,807,967 7,862,479 3,807,967
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION      
Fair value of warrants classified as derivative liability 0 5,720,000 5,720,000
Relative fair value of warrants issued with convertible debt 254,024 0 254,024
Interest paid 0 0 208,689
Fair value of derivative warrants reclassified to equity upon cashless exercise 0 0 92,194
Issuance of common stock in connection with the conversion of notes payable and $463,722 in accrued interest 0 0 3,184,707
Fair value of assets acquired in exchange for securities in a business combination 0 0 78,408
Fair value of liabilities assumed in exchange for securities in a business combination 0 0 (439,616)
Goodwill resulting from business combination $ 0 $ 0 $ 1,675,462