Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash flows from operating activities:    
Net (loss) income $ (21,922,494) $ 13,220,914
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Depreciation and amortization 139,424 150,802
Loss on disposal and abandonment of assets    18,503
Amortization of debt discount and debt offering costs 406,982   
Stock compensation expense 1,722,127 3,073,074
Change in derivative liabilities (6,842) 956,933
Issuance of common stock to 401(k) plan 50,272 61,971
Gain on sale of discontinued operations, before income taxes    (25,172,041)
Issuance of common stock for payment of sublicense fee 1,146,000   
Changes in operating assets and liabilities:    
Accounts receivable 2,189 (278,473)
Inventory 180,549 (75,942)
Prepaid expenses and other assets 231,618 195,482
Accounts payable 1,289,615 74,168
Accrued liabilities and other liabilities 155,864 1,316,733
Deferred revenue    162,830
Net cash used in operating activities (16,604,696) (6,295,046)
Cash flows from investing activities:    
Purchases of equipment (617,699) (94,863)
Proceeds from sales of equipment    1,000
Proceeds from sale of discontinued operations - GDS Business    30,000,000
Payments of costs to sell discontinued operations - GDS Business    (2,761,615)
Patent and trademark costs (5,969) (53,294)
Net cash (used in) provided by investing activities (623,668) 27,091,228
Cash flows from financing activities:    
Proceeds from issuance of common stock 758,695 7,134,037
Payment for common stock repurchased from executives (100,875)   
Payment of tax withholdings related to stock-based compensation (8,765) (2,441,496)
Payment of preferred stock dividends (75,000) (75,000)
Payment of debt issuance costs (153,949)   
Principal payment on notes payable (620,480) (62,411)
Payments under capital leases (4,096) (7,358)
Net cash (used in) provided by financing activities (204,470) 4,547,772
Net (decrease) increase in cash (17,432,834) 25,343,954
Cash, beginning of period 28,644,004 6,420,506
Cash, end of period $ 11,211,170 $ 31,764,460