Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

 v2.3.0.11
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended 105 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Jun. 30, 2011
Net loss $ (3,560,463) $ (3,398,207) $ (27,605,467)
Adjustments to reconcile net loss to cash used in operating activities:      
Depreciation and amortization 290,739 291,677 2,121,936
Stock-based compensation 257,586 241,353 2,204,999
Intrinsic value of beneficial conversion feature associated with convertible debt 257,973 213,792 471,765
Issuance of stock for technology and services     89,520
Impairment of intangible assets     19,671
Loss on disposal of fixed assets     30,468
Loss on derivative warrants 70,393   70,393
Changes in:      
Prepaid expenses and other current assets 25,969 (19,189) (36,945)
Accounts payable and accrued liabilities (407,216) (115,989) (14,335)
Accrued interest 158,672 140,448 463,721
Deferred rent 3,132 289 118,443
Cash used in operating activities (2,903,215) (2,645,826) (22,065,831)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash acquired in a business combination 905,649   905,649
Purchases of fixed assets (23,069)   (5,391,250)
Proceeds from sale of fixed assets     7,000
Purchases of short-term certificates of deposit     (5,500,730)
Proceeds from short-term certificates of deposit     5,500,730
Change in restricted cash 500,000   (55,000)
Payment for intangible assets     (19,671)
Cash provided by (used) in investing activities 1,382,580   (4,553,272)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of convertible notes   2,720,985 2,720,985
Proceeds from long-term obligations     1,677,945
Payments on long-term obligations (675,743) (93,818) (1,227,944)
Payments on capital lease obligations (1,024) (956) (3,587)
Proceeds from issuance of common stock, net of issuance costs 4,866,406   26,576,114
Proceeds from exercise of warrant     250,000
Repurchase of common stock     (31,667)
Cash in lieu of fractional shares in a business combination (145)   (145)
Change in deferred issuance costs (29,200) 89,098 (29,200)
Cash provided by financing activities 4,160,294 2,715,309 29,932,501
INCREASE IN CASH AND EQUIVALENTS 2,639,659 69,483 3,313,398
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 673,739 980,125  
CASH AND EQUIVALENTS AT END OF PERIOD 3,313,398 1,049,608 3,313,398
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION      
Interest paid 13,700 29,300 208,689
Fair value of derivative warrants reclassified to additional paid-in capital upon cashless exercise 48,339   48,339
Issuance of common stock in connection with the conversion of notes payable and associated accrued interest 3,184,706   3,184,706
Fair value of assets acquired in exchange for securities in a business combination 984,057   984,057
Fair value of liabilities assumed in exchange for securities in a business combination (439,616)   (439,616)
Excess of purchase price over net assets acquired in a business combination $ 1,675,462   $ 1,675,462