Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities    
Loss from continuing operations $ (11,640,112) $ (7,631,190)
Loss from discontinued operations (7,981,789) (333,412)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 138,655 138,589
Amortization of financing costs    36,304
Change in unrealized (gain)/loss on derivative instruments 4,526,688 (153,540)
Stock and warrant based compensation 9,336,184 120,000
Loss on disposal of assets 470,454   
Non-cash interest expense 3,238,771 5,181,251
Changes in assets and liabilities:    
Accrued expenses and other current liabilities (167,612) (80,695)
Net cash used in operating activities - continuing operations (2,078,761) (2,722,693)
Net cash used in operating activities - discontinued operations (2,489,869) 1,133,862
Net cash used in operating activities (4,568,630) (1,588,831)
Cash flows from investing activities    
Purchase of property and equipment    (152,132)
Net cash provided by (used in) investing activities    (152,132)
Cash flows from financing activities    
Proceeds from convertible debt 2,100,000 3,750,000
Repayment of borrowings from noteholders (1,400,000) (2,650,000)
Payment of deferred financing costs    (36,304)
Proceeds from sale of common stock 950,000 650,000
Proceeds from sale of preferred shares 3,500,000  
Advance from (payment to) shareholder     
Net cash provided by financing activities 5,150,000 1,713,696
Net increase (decrease) in cash and cash equivalents 581,370 (27,267)
Cash and cash equivalents, beginning of period 8,101 35,368
Cash and cash equivalents, end of period 589,471 8,101
Supplemental disclosures of cash flow information:    
Interest paid 747,150 256,482
Debt discount from warrant liability 2,000,000 2,755,274
Deemed dividend on preferred stock $ (4,136,003)