Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities    
Net loss from continuing operations $ (8,428,751) $ (4,563,436)
Income from discontinued operations 898,501 104,232
Net loss (7,530,250) (4,459,204)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense 16,667 99,803
Depreciation & Amortization 400,409 360,554
Amortization of financing costs 404 21,723
Gain (loss) on change in fair value of derivative liability 4,148,748 (477,830)
Stock and warrant based compensation 177,876 120,000
Non-cash interest expense 1,775,086 4,742,188
Changes in assets and liabilities:    
Account receivable-trade 717,785 (545,776)
Finance receivable (311,714)   
Inventories (219,441) (300,133)
Prepaid expenses and other current assets (87,451) (351,690)
Accounts payable (380,408) (558,990)
Accrued expenses and other current liabilities 847,079 (283,980)
Other assets (447,215)   
Discontinued operations 16,440 (3,364)
Net cash used in operating activities (875,985) (1,636,699)
Cash flows from investing activities    
Purchase of property and equipment (86,366) (320,116)
Net cash used in investing activities (86,366) (320,116)
Cash flows from financing activities    
Proceeds from convertible debt 2,100,000 3,750,000
Proceeds from sale of common stock 950,000 650,000
Payment of deferred financing costs    (36,304)
Repayment of debt (217,550) (190,593)
Payment to shareholder (1,052,500)  
Repayment of borrowings from noteholders (350,000) (2,550,000)
Net cash provided by financing activities 1,429,950 1,623,103
Net increase (decrease) in cash and cash equivalents 467,599 (333,712)
Cash and cash equivalents, beginning of period 62,296 416,333
Cash and cash equivalents, end of period 529,895 82,621
Supplemental disclosures of cash flow information:    
Interest paid 173,600 312,232
Debt discount from warrant liability 2,000,000 2,755,274
Cashless exercise of warrants for common stock    $ 6,503,201