Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) (USD $)
 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating activities    
Net loss $ (11,248,659) $ (1,111,609)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense 49,803 16,000
Depreciation and Amortization 238,734 166,650
Amortization of financing costs 3,821   
Gain on change in fair value of derivative liability (455,918)   
Stock and warrant based compensation 120,000   
Non-cash interest expense 11,203,163   
Changes in assets and liabilities:    
Account receivable-trade (787,994) (267,038)
Inventories (551,567) (242,218)
Prepaid expenses and other current assets (416,748) (51,085)
Accounts payable (9,021) 471,054
Accrued expenses and other current liabilities (183,295) 167,973
Net cash used in operating activities (2,037,681) (850,273)
Cash flows from investing activities    
Purchase of property and equipment (277,876) (9,376)
Cash acquired on business combination    585,720
Net cash provided by (used in) investing activities (277,876) 576,344
Cash flows from financing activities    
Payment of deferred financing costs (25,000) (150,364)
Repayments to short-term loan (42,986) (97,384)
Proceeds from convertible debt 3,750,000 2,250,000
Repayment of borrowings from noteholders (2,175,000)   
Repayments of long term debt (83,578) (137,371)
Proceeds from sale of common stock 650,000   
Repayment of shareholder loan    (2,742)
Net cash provided by financing activities 2,073,436 1,862,139
Net increase (decrease) in cash and cash equivalents (242,121) 1,588,210
Cash and cash equivalents, beginning of period 416,333 251,475
Cash and cash equivalents, end of period 174,212 1,839,685
Supplemental disclosures of cash flow information:    
Interest paid 256,482 218,497
Debt discount from warrant liability $ 2,755,274