Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended 128 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Net loss $ (5,518,341) $ (4,587,714) $ (45,795,741)
Adjustments to reconcile net loss to cash used in operating activities:      
Depreciation and amortization 219,968 266,077 3,133,259
Stock-based compensation 803,791 823,475 5,161,961
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 4,513 0 40,990
(Gain) loss on revaluation of derivative warrants (666,384) 46,080 (620,372)
Loss on issuance of derivative warrants 744,957 0 744,957
Changes in:      
Prepaid expenses and other current assets 180,024 115,977 (131,199)
Accounts payable and accrued liabilities 304,484 129,831 641,345
Accrued interest 0 0 463,722
Deferred rent 4,391 5,974 139,795
Cash used in operating activities (3,922,597) (3,200,300) (35,640,327)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash acquired in a business combination 0 0 905,649
Purchases of fixed assets (92,977) (29,140) (5,677,260)
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 121,768 0 (1,933,232)
Payment for intangible assets 0 0 (19,671)
Cash provided by (used in) investing activities 28,791 (29,140) (6,717,514)
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 (1,178) (1,098) (8,061)
Proceeds from issuance of common stock, net of issuance costs 4,975,153 4,870,978 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 financing costs 70,539 0 28,500
Cash provided by financing activities 5,044,514 4,869,880 48,186,094
INCREASE IN CASH AND EQUIVALENTS 1,150,708 1,640,440 5,828,253
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 4,677,545 5,505,960 0
CASH AND EQUIVALENTS AT END OF PERIOD 5,828,253 7,146,400 5,828,253
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION      
Fair value of warrants classified as derivative liability 5,720,000 0 5,720,000
Interest paid 0 43,855 208,689
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