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, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:      
Net (loss) income $ (29,157,204) $ 5,612,992 $ (49,964,868)
Adjustments to reconcile net (loss) income to net cash used in operating activities:      
Depreciation and amortization of equipment 198,822 175,296 215,462
Amortization of intangible assets 1,400 1,248 7,998
Loss on disposal and abandonment of assets 2,534 18,645 7,476
Amortization of debt discount and debt offering costs 544,517 3,805 16,109
Issuance of common stock in payment of interest and dividends       476,667
Stock compensation expense 2,304,118 3,592,090 597,672
Change in derivative liabilities (32,110) 952,375 1,336,234
Loss on extinguishment of debt       41,717,380
Issued warrants in connection with consulting agreement       279,367
Gain on sale of GDS Business, before income tax    (26,173,805)   
Issuance of common stock for payment of sublicense fee 1,146,000      
Other 61,928 61,971 40,623
Changes in operating assets and liabilities:      
Accounts receivable 6,499 (219,021) (707,914)
Inventory 524,049 (53,289) (381,382)
Prepaid expenses and other assets (385,125) (40,204) 39,232
Accounts payable 736,109 (538,666) 759,411
Accrued liabilities and other liabilities 125,144 487,055 157,899
Deferred revenue    109,503 232,866
Net cash used in operating activities (23,923,319) (16,010,005) (5,169,768)
Cash flows from investing activities:      
Purchases of equipment (663,348) (183,830) (366,629)
Proceeds from sales of equipment    1,000   
Proceeds from sale of GDS Business    30,159,527   
Payments of costs to sell GDS Business    (2,765,932)   
Patent and trademark costs (8,460) (52,504) (32,111)
Net cash provided by investing activities (671,808) 27,158,261 (398,740)
Cash flows from financing activities:      
Proceeds from issuance of common stock, net 2,724,189 7,198,373 7,092,163
Payment for common stock repurchased from executives (100,875)      
Payment of tax withholdings related to stock-based compensation (8,765) (2,762,710) (133,153)
Payment of stock issuance costs       (478,111)
Payment of preferred stock dividends (100,000) (100,000) (111,389)
Proceeds from notes payable 4,000,000 7,000,000   
Payment of debt issuance costs (153,949) (189,390)   
Principal payment on notes payable (1,285,046) (62,411) (8,710)
Payments under capital leases (5,867) (8,620) (11,628)
Net cash provided by financing activities 5,069,687 11,075,242 6,349,172
Net (decrease) increase in cash (19,525,440) 22,223,498 780,664
Cash, beginning of period 28,644,004 6,420,506 5,639,842
Cash, end of period $ 9,118,564 $ 28,644,004 $ 6,420,506