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 131 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Net loss $ (6,833,659) $ (6,639,926) $ (47,111,059)
Adjustments to reconcile net loss to cash used in operating activities:      
Depreciation and amortization 325,660 384,083 3,238,951
Stock-based compensation 1,101,465 1,159,911 5,459,635
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 (2,263,756) 42,178 (2,217,744)
Loss on issuance of derivative warrants 744,957 0 744,957
Changes in:      
Prepaid expenses and other current assets (1,959) (81,012) (313,182)
Accounts payable and accrued liabilities 440,323 234,767 777,184
Accrued interest 0 0 463,722
Deferred rent 6,450 8,828 141,854
Cash used in operating activities (6,476,006) (4,891,171) (38,193,736)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash acquired in a business combination 0 0 905,649
Purchases of fixed assets (134,956) (37,142) (5,719,239)
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 0 (55,000)
Payment for intangible assets 0 0 (19,671)
Cash provided by (used in) investing activities 1,865,044 (37,142) (4,881,261)
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 (1,782) (1,661) (8,665)
Proceeds from issuance of common stock, net of issuance costs 4,975,153 4,870,978 43,688,181
Proceeds from exercise of warrants 0 150,800 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 5,043,910 5,020,117 48,185,490
INCREASE IN CASH AND EQUIVALENTS 432,948 91,804 5,110,493
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 4,677,545 5,505,960 0
CASH AND EQUIVALENTS AT END OF PERIOD 5,110,493 5,597,764 5,110,493
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