XML 67 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:    
Net loss $ (3,361,735) $ (3,139,923)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 72,567 73,191
Amortization of convertible debt discount 282,028 0
Amortization of preferred stock discount 0 68,346
Change in fair value of derivative liabilities 435,424 (126,580)
Change in fair value of 10% convertible preferred stock warrants 40,641 (347,097)
Share-based compensation 141,492 497,039
Change in allowance for doubtful accounts (131,996) 100,415
Changes in operating assets and liability:    
Accounts receivable 67,082 (247,973)
Inventories 46,718 (829,277)
Prepaid expenses and deposits 78,486 (20,868)
Accounts payable 270,064 995,904
Accrued liabilities 146,418 128,973
Net cash used in operating activities (1,912,811) (2,542,644)
Cash flows from investing activities:    
Purchase of property and equipment (352,708) (848,116)
Net cash used in investing activities (352,708) (848,116)
Cash flows from financing activities:    
Proceeds from issuance of demand promissory notes 0 5,000,001
Recovery of shareholder short swing profits 3,095,308 0
Repayments of convertible debt 0 (772,500)
Repayments of revolving credit agreement 0 (466,000)
Net cash provided by financing activities 4,845,309 3,761,501
Net increase in cash 2,579,790 370,741
Cash and cash equivalents at beginning of period 346,905 1,982,772
Cash and cash equivalents at end of period 2,926,695 2,353,513
Supplemental disclosures of cash flow information:    
Cash paid for interest 1,322 66,142
Fair value of conversion option of 8% convertible promissory notes 545,425 0
Redeemable common stock reclassified to permanent equity 0 242,500
Fair value of bonus warrants granted 0 57,034
8% Convertible promissory note
   
Cash flows from financing activities:    
Proceeds from issuance of demand promissory notes 1,750,001 0
Supplemental disclosures of cash flow information:    
Fair value of warrants issued 249,151 0
Revolving Credit Agreement
   
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of convertible debt discount 0 305,206
10% Convertible Preferred Stock
   
Supplemental disclosures of cash flow information:    
Conversion of 10% convertible preferred stock and debt 39,000 262,500
Dividends on 10% convertible preferred stock 356,579 348,524
Fair value of warrants issued 0 1,875,463
Amortization of 10% convertible preferred stock discount $ 455,758 $ 474,680