Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v2.3.0.15
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:    
Net income (loss) $ (2,813,000) $ (9,840,000)
Adjustments to reconcile net income (loss) to cash used in operating activities:    
Gain on change in fair value of derivative - warrants (3,312,000) (6,384,000)
Loss on change in fair value of derivative - preferred stock 470,000 10,455,000
Gain on negotiated accounts payable 0 (509,000)
Depreciation and amortization 176,000 179,000
Stock option compensation expense 767,000 838,000
Stock and warrants issued for services 700,000 556,000
Change in operating assets and liabilities:    
Receivables 899,000 (4,000)
Inventory (192,000) 0
Prepaid expenses and other current assets 43,000 13,000
Other assets (20,000) 12,000
Accounts payable and accrued expenses (1,355,000) (202,000)
Dividends payable 197,000 119,000
Accrued interest payable (96,000) (117,000)
Deferred revenue (1,109,000) (260,000)
Net cash used in operating activities (5,645,000) (5,144,000)
Cash flows from investing activities:    
Capital expenditures (40,000) (7,000)
Net cash used in investing activities (40,000) (7,000)
Cash flows from financing activities:    
Proceeds from exercise of stock options 0 192,000
Proceeds from common stock issuances, net of costs 0 5,848,000
Net cash provided by financing activities 0 6,040,000
Net increase (decrease) in cash and cash equivalents (5,685,000) 889,000
Cash and cash equivalents at beginning of period 7,033,000 607,000
Cash and cash equivalents at end of period 1,348,000 1,496,000
Supplemental cash flow information:    
Cash paid for interest 660,000 440,000
Supplemental disclosure of noncash transactions:    
Shares issued for dividends on preferred stock 1,000 282,000
Preferred stock dividends in dividends payable $ 1,327,000 $ 1,340,000