Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 9 Months Ended 119 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Net loss $ (6,639,926) $ (5,469,502) $ (38,120,352)
Adjustments to reconcile net loss to cash used in operating activities:      
Depreciation and amortization 384,083 439,587 2,800,121
Stock-based compensation 1,159,911 655,656 4,014,784
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 42,178 66,820 54,336
Changes in:      
Prepaid expenses and other current assets (81,012) (224,548) (319,809)
Accounts payable and accrued liabilities 234,767 (331,357) 332,679
Accrued interest 0 158,672 463,722
Deferred rent 8,828 6,083 133,209
Cash used in operating activities (4,891,171) (4,434,607) (30,023,877)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash acquired in a business combination 0 905,649 905,649
Purchases of fixed assets (37,142) (112,195) (5,523,734)
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 0 500,000 (55,000)
Payment for intangible assets 0 0 (19,671)
Cash provided by (used in) investing activities (37,142) 1,293,454 (4,685,756)
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 (1,661) (1,549) (6,309)
Proceeds from issuance of common stock, net of issuance costs 4,870,978 4,866,406 36,745,232
Proceeds from exercise of warrants 150,800 0 400,800
Repurchase of common stock 0 0 (31,667)
Cash in lieu of fractional shares in a business combination 0 (145) (145)
Change in deferred issuance costs 0 (130,800) 28,500
Cash provided by financing activities 5,020,117 4,058,169 40,307,397
INCREASE IN CASH AND EQUIVALENTS 91,804 917,016 5,597,764
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 5,505,960 673,739 0
CASH AND EQUIVALENTS AT END OF PERIOD 5,597,764 1,590,755 5,597,764
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION      
Interest paid 0 13,716 208,689
Fair value of derivative warrants reclassified to equity upon cashless exercise 43,855 48,339 92,194
Issuance of common stock in connection with the conversion of notes payable and $463,722 in accrued interest 0 3,184,707 3,184,707
Fair value of assets acquired in exchange for securities in a business combination 0 78,408 78,408
Fair value of liabilities assumed in exchange for securities in a business combination 0 (439,616) (439,616)
Goodwill resulting from business combination $ 0 $ 1,675,462 $ 1,675,462