XML 40 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating expenses:    
Net loss $ (930,767) $ (585,109)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 1,261 1,048
Interest income on short-term investment (68) (27)
Change in fair value of warrant liabilities (33,064) (1,929)
Stock-based compensation 249,385   
Bad debts expense 53,111   
Cancellation of trade liabilities and unpaid interest (31,447) (30,498)
Changes in operating assets and liabilities:    
Accounts receivable (203,637) 19,072
Costs and estimated earnings in excess of billings on uncompleted contracts 57,665   
Inventory    31,227
Prepaid expenses and other current assets (1,405) 16,667
Accounts payable and accrued expenses 47,952 (163,800)
Accrued compensation and related costs    (140,310)
Accrued interest, related party 4,087   
Accrued interest    2,034
Related party accounts payable and accrued expenses (16,335) (22,254)
Billings in excess of costs and estimated earnings on uncompleted contracts 1,714 (1,800)
Deferred revenue    184,709
Net cash used in operating activities (801,548) (690,943)
Cash flows used in investing activities    
Purchase of equipment    (4,720)
Net cash used in investing activities    (4,720)
Cash flows from financing activities:    
Proceeds from issuances of common stock    1,200,000
Proceeds from issuance of common stock and warrants in private offering 642,183   
Net cash provided by financing activities 642,183 1,200,000
Effect of exchange rate changes on cash (634)   
Net increase (decrease) in cash (159,999) 504,337
Cash and cash equivalents - beginning of period 561,759 1,038,661
Cash and cash equivalents - end of period 401,760 1,542,998
Cash paid during the period for:    
Interest      
Supplemental disclosure of non-cash financing activities:    
In connection with the private offering, $80,000 was paid for a prior liability which was included in accounts payable and accrued expenses      
Issuance of common stock for settlement of debt 67,782 10,000
Forgiveness of related party accrued compensation $ 73,888