Quarterly report pursuant to Section 13 or 15(d)

Consolidated Condensed Statements of Cash Flows

v2.4.0.6
Consolidated Condensed Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,368,637) $ (2,153,269)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and amortization 82,388 109,520
Accretion of interest and amortization of debt issue costs 46,159   
Stock-based compensation expense 116,816 113,689
Amortization of third party fees paid in restricted common stock 137,522   
Change in fair value of warrant derivative liability (36,322) (307,467)
Changes in operating assets and liabilities:    
Accounts receivable (25,708) 118,818
Inventories 163,360 (4,056)
Accounts payable 399,071 537,150
Accrued employee compensation (49,057) 33,494
Deferred revenue and other accrued expenses 126,403 (7,088)
Prepaid expenses and other current assets (211,443) 71,296
Net cash used in operating activities (1,619,448) (1,487,913)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from stock option exercises    43,980
Restricted cash    20,014
Payments on short-term loans (93,000)   
Payments of dividends (67,500) (42,037)
Borrowings on short-term loans 405,000 412,000
Net proceeds from the issuance of common stock 377,459   
Net proceeds from the issuance of convertible preferred stock 825,003 798,077
Net cash provided by financing activities 1,446,962 1,232,034
Change in cash and cash equivalents (172,486) (255,879)
Cash and cash equivalents, beginning of period 222,775 552,849
Cash and cash equivalents, end of period 50,289 296,970
Non-cash investing and financing activities:    
Income taxes paid in cash 1,900 1,900
Issuance of common stock dividends on preferred stock 249,907 150,497
Issuance of common stock warrants to placement agent    94,313
Issuance of common stock for services 324,908 109,996
Settlement of debt and board fees in preferred stock 116,098   
Convertible debt exchanged for common stock 387,547   
Convertible debt exchanged for preferred stock 12,898   
Deemed dividend on warrant modifications 190,891 325,595
Beneficial conversion feature on convertible preferred stock    $ 304,823