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
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,026,437) $ (1,884,794)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 203,775 158,286
Provision for losses on accounts receivable 57,600 20,600
Provision (recovery) for inventory reserve (26,800) 3,300
Stock-based compensation 195,545 444,374
(Increase) decrease in:    
Short-term investments, restricted (4,776) (3,428)
Accounts receivable (1,358,611) 368,491
Inventory (760,836) (1,247,871)
Due from related party 243,902 (201,509)
Prepaid assets and other current assets (290,130) (27,613)
Other assets (4,000) 0
Increase (decrease) in:    
Accounts payable 338,796 106,808
Accrued expenses 80,459 (95,462)
Deferred revenue 127,523 (18,137)
Interest payable, related party 71,208 (32,665)
Net cash used in operating activities (3,152,782) (2,409,620)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property and equipment (219,711) (115,186)
Purchases of intangible assets (164,296) (38,747)
Purchases of short-term investments 0 (680,000)
Sale of short-term investments 506,345 85,000
Net cash provided by (used in) investing activities 122,338 (748,933)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from payments on receivable from shareholder 105,000 0
Proceeds from issuance of demand notes payable, related party 300,000 750,000
Proceeds from sale of common stock, net of costs 680,000 3,610,993
Proceeds from issuance of restricted stock 0 453
Purchase of stock options 0 (12,500)
Purchase of restricted stock (337) 0
Proceeds from sale of subsidiary common stock 500,000 0
Net cash provided by financing activities 1,584,663 4,348,946
Net increase (decrease) in cash and cash equivalents (1,445,781) 1,190,393
Cash and cash equivalents, beginning of the year 3,018,566 1,828,173
Cash and cash equivalents, end of the year 1,572,785 3,018,566
Non-cash investing and financing activities:    
Debt Conversion, Converted Instrument, Interest Into Common Stock 6,100 72,959
Conversion of redeemable common stock to common stock 0 500,000
Conversion of related party notes to common stock 100,000 0
Settlement of shareholder receivable $ 240,000 $ 0