Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities    
Net loss $ (7,964,602) $ (5,457,310)
Adjustments to reconcile net loss to net cash used in operating activities:    
Deferred income taxes    3,272
Bad debt expense 149,803 326,456
Depreciation and amortization 439,420 531,844
Amortization of financing costs 43,946 160,408
Write-off obsolete inventory 405,918 1,439,616
Change in fair value of derivative liability (153,540) 281,508
Stock and warrant based compensation 120,000   
Equity in loss of unconsolidated subsidiary    42,677
Non-cash interest expense 5,181,251 758,044
Changes in assets and liabilities:    
Account receivable-trade (461,762) 560,353
Inventories (237,254) (665,914)
Prepaid expenses and other current assets 23,401 (102,031)
Accounts payable (880,394) 652,240
Accrued expenses and other current liabilities 1,862,417 1,047,884
Net cash used in operating activities (1,471,396) (420,953)
Cash flows from investing activities    
Purchase of property and equipment (374,336) (575,430)
Cash acquired on business combination   585,720
Net cash provided by (used in) investing activities (374,336) 10,290
Cash flows from financing activities    
Proceeds from convertible debt 3,750,000 2,750,000
Payment of deferred financing costs (36,304) (150,364)
Repayment of borrowings from noteholders (2,650,000) (2,725,904)
Proceeds from sale of common stock 650,000 705,000
Repayment of debt (222,001)   
Advance from (payment to) shareholder   (3,211)
Net cash provided by financing activities 1,491,695 575,521
Net increase (decrease) in cash and cash equivalents (354,037) 164,858
Cash and cash equivalents, beginning of year 416,333 251,475
Cash and cash equivalents, end of year 62,296 416,333
Supplemental disclosures of cash flow information:    
Interest paid 384,084 539,616
Conversion of convertible note payable and acrued interest to common stock    509,178
Derivative liability relieved for cashless exercise of warrant for common stock 6,503,402   
Debt discount from warrants $ 2,755,274