Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash flows from operating activities    
Net loss $ (1,475,763) $ (3,646,036)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense 16,667 9,000
Depreciation and amortization 128,612 114,716
Amortization of deferred financing costs 1,911 1,910
Change in fair value of derivative liability (19,102) (418,192)
Non-cash interest expense 422,211 3,359,905
Changes in assets and liabilities:    
Account receivable-trade 255,073 (522,319)
Inventories (27,229) 78,014
Prepaid expenses and other current assets (67,022) (235,914)
Accounts payable 730,813 (446,504)
Accrued expenses and other current liabilities 129,206 (230,162)
Net cash used in operating activities 95,377 (1,935,582)
Cash flows from investing activities    
Purchase of property and equipment (40,484) (242,427)
Cash acquired on business combination     
Net cash provided by (used in) investing activities (40,484) (242,427)
Cash flows from financing activities    
Proceeds from convertible debt    3,300,000
Repayment of borrowings from noteholders    (2,111,441)
Proceeds from sale of common stock    650,000
Repayment of debt (25,066)  
Payment to shareholder     
Net cash provided by financing activities (25,066) 1,838,559
Net increase (decrease) in cash and cash equivalents 29,827 (339,450)
Cash and cash equivalents, beginning of year 62,296 416,333
Cash and cash equivalents, end of year 92,123 76,883
Supplemental disclosures of cash flow information:    
Interest paid $ 52,727 $ 223,885