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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net loss$ (2,153,269)$ (2,305,646)
Adjustments to reconcile net loss to operating cash flows:  
Depreciation and amortization109,520149,265
Stock-based compensation expense113,689227,476
Change in fair value of warrant derivative liability(307,467)0
Bad debt expense018,420
Changes in operating assets and liabilities:  
Short-term investments0(248,000)
Accounts receivable118,818(9,579)
Inventories(4,056)(494,470)
Deposits0175,538
Income tax receivable0(244,479)
Accounts payable537,150175,129
Accrued employee compensation33,49490,055
Deferred revenue and other accrued expenses(49,125)(27,543)
Prepaid expenses and other current assets71,29632,413
Net cash used in operating activities(1,529,950)(2,461,421)
CASH FLOWS FROM INVESTING ACTIVITIES:  
Disposals/(Additions) to property and equipment0(86,949)
Net cash used in investing activities0(86,949)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Proceeds from stock option exercise43,9800
Decrease in restricted cash20,0140
Proceeds from stock warrant exercise01,421,275
Borrowings on short-term loans412,0000
Net proceeds from the issuance of preferred stock798,077465,867
Net cash provided by financing activities1,274,0711,887,142
Change in cash and cash equivalents(255,879)(661,228)
Cash and cash equivalents, beginning of period552,8491,609,778
Cash and cash equivalents, end of period296,970948,550
SUPPLEMENTAL INFORMATION:  
Income taxes paid1,9001,900
Issuance of common stock dividend on preferred stock150,497222,931
Issuance of common stock warrants to placement agent94,31318,122
Issuance of common stock for services109,99618,720
Series B dividend paid in cash42,0377,212
Deemed dividend on warrant modifications325,5950
Beneficial conversion feature on convertible preferred stock$ 304,823$ 154,389