Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

 v2.3.0.11
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
 6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Cash flows from operating activities:    
Net income (loss) $ (3,163,000) $ 2,879,000
Adjustments to reconcile net income (loss) to cash used in operating activities:    
Gain on change in fair value of derivative - warrants (2,174,000) (6,238,000)
Loss on change in fair value of derivative - preferred stock 420,000 0
Gain on negotiated accounts payable 0 (509,000)
Depreciation and amortization 120,000 120,000
Stock option compensation expense 423,000 554,000
Stock and warrants issued for services 475,000 286,000
Change in operating assets and liabilities:    
Receivables 967,000 (2,000)
Prepaid expenses and other current assets (5,000) (10,000)
Other assets (24,000) 9,000
Accounts payable and accrued expenses (37,000) (597,000)
Dividends payable 124,000 78,000
Accrued interest payable 399,000 (225,000)
Deferred revenue (173,000) (174,000)
Net cash used in operating activities (2,648,000) (3,829,000)
Cash flows from investing activities:    
Capital expenditures (39,000) (8,000)
Net cash used in investing activities (39,000) (8,000)
Cash flows from financing activities:    
Proceeds from exercise of stock options 0 140,000
Proceeds from common stock issuances, net of costs 0 5,848,000
Net cash provided by financing activities 0 5,988,000
Net increase (decrease) in cash and cash equivalents (2,687,000) 2,151,000
Cash and cash equivalents at beginning of period 7,033,000 607,000
Cash and cash equivalents at end of period 4,346,000 2,758,000
Supplemental cash flow information:    
Cash paid for interest 0 440,000
Supplemental disclosure of noncash transactions:    
Shares issued for dividends on preferred stock 1,000 191,000
Preferred stock dividends in dividends payable $ 880,000 $ 888,000