XML 48 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
6 Months Ended 12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2013
Cash flows from operating activities      
Net loss $ (670,683) $ (4,347,353) $ (5,489,892)
Adjustments to reconcile net loss to net cash used in operating activities:      
Provision for doubtful accounts (50,036) (44,716)  
Provision for employee advance reserve 4,715     
Depreciation and amortization 83,887 71,693  
Stock-based compensation 268,263 353,407  
Warrants issued to 2012 private placement investors    487,200  
Loss on extinguishment of notes and accounts payable    2,792,900  
Imputed value of services contributed 116,667 175,000  
Amortization of debt discount 117,901 84,763  
Changes in operating assets and liabilities:      
Accounts receivable 269,361 (73,928)  
Inventories - finished goods 105,634 37,987  
Prepaid expenses and other current assets 29,160 (815)  
Accounts payable - trade (329,826) (205,364)  
Accounts payable - related parties (35,017) 159,050  
Accrued expenses and other current liabilities 69,104 (360,175)  
Deferred revenue (58,306) (55,182)  
Net cash used in operating activities (79,176) (925,533) (1,024,781)
Cash flows from investing activities      
Change in restricted cash    850,002  
Website development costs (67,785) (51,796)  
Net cash (used in) and provided by investing activities (67,785) 798,206  
Cash flows from financing activities      
Principal payments on equipment leases payable (27,000) (23,838)  
Proceeds from issuance of notes payable 150,000 500,000  
Repayment of notes payable    (2,000,000)  
Repayment of convertible notes payable    (1,000,000)  
Proceeds from the sale of common stock    2,651,973  
Net cash provided by financing activities 123,000 128,135  
(Net decrease) net increase in cash (23,961) 808  
Cash - beginning of period 67,744      
Cash - end of period 43,783 808 67,744
Interest 44,362 399,374  
Taxes 89 899  
Non-cash investing and financing activities:      
Issuance of Series B preferred stock for settlement of accrued dividends 279,380 261,084  
Cashless exercise of warrants into common stock    9,734  
Warrants issued as debt discount in connection with notes payable 36,000 315,300  
Accrual of contractual dividends on Series B convertible preferred stock 149,459 139,680  
Deemed dividends on Series B convertible preferred stock    1,532,722  
Common stock and warrants issued in exchange of notes and accounts payable    3,625,900  
Conversion of accounts payable to notes payable    $ 40,000