Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:    
Net income (loss) $ (14,835,000) $ 5,524,000
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:    
(Gain) on change in fair value of derivative - warrants 0 (140,000)
(Gain) loss on change in fair value of derivative - preferred stock 11,810,000 (8,471,000)
Depreciation and amortization 2,000 2,000
Stock option compensation expense 1,159,000 354,000
Stock issued to directors and employees 0 99,000
Stock issued for services 291,000 108,000
Change in operating assets and liabilities:    
Receivables 71,000 784,000
Inventory 0 194,000
Prepaid expenses and other current assets 1,000 162,000
Accounts payable and accrued expenses 767,000 (1,333,000)
Interest payable on dividends 423,000 182,000
Deferred revenue (198,000) 3,010,000
Net cash provided by (used in) operating activities (509,000) 475,000
Cash flows from investing activities:    
Capital expenditures 0 (1,000)
Net cash used in investing activities 0 (1,000)
Cash flows from financing activities:    
Proceeds from short-term note payable 250,000 0
Proceeds from exercise of stock options 0 29,000
Net cash provided by financing activities 250,000 29,000
Net increase (decrease) in cash and cash equivalents (259,000) 503,000
Cash and cash equivalents at beginning of period 424,000 396,000
Cash and cash equivalents at end of period 165,000 899,000
Supplemental cash flow information:    
Cash paid for interest 0 0
Supplemental disclosure of noncash transactions:    
Preferred stock dividends in dividends payable $ 2,191,000 $ 2,202,000