Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Cash flows from operating activities:      
Net income (loss) $ 5,612,992 $ (49,964,868) $ (39,605,720)
Adjustments to reconcile net income (loss) to net cash used in operating activities:      
Depreciation and amortization of equipment 175,296 215,462 202,703
Amortization of intangible assets 1,248 7,998 131,046
Loss on disposal and abandonment of assets 18,645 7,476 18,794
Amortization of debt discount and debt offering costs 3,805 16,109 428,060
Issuance of common stock in payment of interest and dividends   476,667 791,333
Stock compensation expense 3,592,090 597,672 445,411
Change in derivative liabilities 952,375 1,336,234 18,132,274
Loss on extinguishment of debt   41,717,380 16,240,592
Issuance of warrants in connection with consulting agreement   279,367  
Gain on sale of GDS Business (26,173,805)    
Impairment loss on Cardiosonix     1,713,822
Other 61,971 40,623 33,473
Change in operating assets and liabilities:      
Accounts receivable (219,021) (707,914) 296,813
Inventory (53,289) (381,382) (653,043)
Prepaid expenses and other assets (40,204) 39,232 105,262
Accounts payable (538,666) 759,411 38,146
Accrued liabilities and other liabilities 487,055 157,899 121,277
Deferred revenue 109,503 232,866 77,704
Net cash used in operating activities (16,010,005) (5,169,768) (1,482,053)
Cash flows from investing activities:      
Maturities of available-for-sale securities     494,000
Purchases of equipment (183,830) (366,629) (96,331)
Proceeds from sales of equipment 1,000   251
Proceeds from sale of GDS Business, net 30,159,527    
Payment of transaction costs to sell GDS Business (2,765,932)    
Patent and trademark costs (52,504) (32,111) (71,344)
Net cash provided by (used in) investing activities 27,158,261 (398,740) 326,576
Cash flows from financing activities:      
Proceeds from issuance of common stock 7,198,373 7,092,163 3,641,010
Payment of tax withholdings related to stock-based compensation (2,762,710) (133,153) (24,134)
Payment of stock issuance costs   (478,111) (219,867)
Payment of preferred stock dividends (100,000) (111,389)  
Proceeds from notes payable 7,000,000    
Payment of debt issuance costs (189,390)   (20,183)
Payment of notes payable (62,411) (8,710) (137,857)
Payments under capital leases (8,620) (11,628) (9,487)
Net cash provided by financing activities 11,075,242 6,349,172 3,229,482
Net increase in cash 22,223,498 780,664 2,074,005
Cash, beginning of year 6,420,506 5,639,842 3,565,837
Cash, end of year $ 28,644,004 $ 6,420,506 $ 5,639,842