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 $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flows from operating activities:    
Net income (loss) $ (13,366,000) $ 5,681,000
Adjustments to reconcile net income (loss) to cash used in operating activities:    
Gain (loss) on change in fair value of derivative - warrants 0 28,000
Gain (loss) on change in fair value of derivative - preferred stock 11,110,000 (8,050,000)
Depreciation and amortization 1,000 1,000
Stock option compensation expense 987,000 328,000
Stock issued to directors and employees 0 66,000
Stock issued for services 207,000 97,000
Change in operating assets and liabilities:    
Receivables 16,000 581,000
Inventory 0 194,000
Prepaid expenses and other current assets (13,000) (41,000)
Accounts payable and accrued expenses 477,000 (734,000)
Interest payable on dividends 259,000 86,000
Deferred revenue (47,000) 3,154,000
Net cash provided by (used in) operating activities (369,000) 1,391,000
Cash flows from financing activities:    
Proceeds from exercise of stock options 0 11,000
Net cash provided by financing activities 0 11,000
Net increase (decrease) in cash and cash equivalents (369,000) 1,402,000
Cash and cash equivalents at beginning of period 424,000 396,000
Cash and cash equivalents at end of period 55,000 1,798,000
Supplemental cash flow information:    
Cash paid for interest 0 0
Supplemental disclosure of noncash transactions:    
Preferred stock dividends in dividends payable $ 1,451,000 $ 1,460,000