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 122 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Net loss $ (8,796,974) $ (7,435,422) $ (40,277,400)
Adjustments to reconcile net loss to cash used in operating activities:      
Depreciation and amortization 497,253 584,841 2,913,291
Stock-based compensation 1,503,297 907,460 4,358,170
Intrinsic value of beneficial conversion feature associated with convertible debt 0 257,973 471,765
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 0 6,009 36,477
Loss on derivative warrants 33,854 12,158 46,012
Changes in:      
Prepaid expenses and other current assets (72,426) (175,883) (311,223)
Accounts payable and accrued liabilities 238,949 (294,969) 336,861
Accrued interest 0 158,673 463,722
Deferred rent 11,023 9,070 135,404
Cash used in operating activities (6,585,024) (5,970,090) (31,717,730)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash acquired in a business combination 0 905,649 905,649
Purchases of fixed assets (97,691) (118,411) (5,584,283)
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) 500,000 (2,055,000)
Payment for intangible assets 0 0 (19,671)
Cash provided by (used in) investing activities (2,097,691) 1,287,238 (6,746,305)
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 (675,743) (1,227,944)
Payments on capital lease obligations (2,235) (2,085) (6,883)
Proceeds from issuance of common stock and warrants, net of issuance costs 6,838,774 10,164,546 38,713,028
Proceeds from exercise of warrant 1,088,300 0 1,338,300
Repurchase of common stock 0 0 (31,667)
Cash in lieu of fractional shares in a business combination 0 (145) (145)
Change in deferred financing costs (70,539) 28,500 (42,039)
Cash provided by financing activities 7,854,300 9,515,073 43,141,580
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (828,415) 4,832,221 4,677,545
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,505,960 673,739 0
CASH AND CASH EQUIVALENTS AT END OF PERIOD 4,677,545 5,505,960 4,677,545
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION      
Interest paid 0 13,716 208,689
Fair value of derivative warrants reclassified to additional paid-in capital upon cashless exercise 43,855 48,339 92,194
Issuance of common stock in connection with the conversion of notes payable and accrued interest 0 3,184,707 3,184,707
Fair value of assets acquired in exchange for securities in a business combination 0 78,407 78,407
Fair value of liabilities assumed in exchange for securities in a business combination 0 (439,615) (439,615)
Goodwill resulting from a business combination $ 0 $ 1,675,462 $ 1,675,462