Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows

v2.4.0.6
Condensed Consolidated Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Net income (loss) $ 1,112,428 $ (2,732,145)
Amortization of debt discounts and financing costs 191,357 374,675
Gain on sale of product line (829,296)  
(Gain) loss on derivative liability (172,476) 1,304,905
(Gain) loss on disposal of property and equipment (2,165) 104,268
Provision for lease loss 59,937  
Stock based compensation expense 132,642 154,591
Depreciation 21,549 84,265
Amortization 181,260 181,260
Provision for doubtful accounts (68,321) 41,290
Accounts receivable, trade and other 62,960 (1,097,533)
Inventories (241,123) 404,462
Prepaid expenses 25,330 (141,294)
Other assets   (140,232)
Other current liabilities (91,170)  
Accounts payable, accrued liabilities & expenses, net (652,257) 279,412
Deferred lease liability 26,060 23,991
Net Cash Used In Operating Activities (243,285) (1,158,085)
Purchase of property and equipment   (4,800)
Proceeds from disposal of property and equipment 6,645  
Proceeds from sale of product line 1,000,000  
Deposit of restricted cash (91,000)  
Net Cash Provided By (Used In) Investing Activities 915,645 (4,800)
Repayment on line of credit   (387,000)
Proceeds from issuance of note payable 700,000  
Payments on note payable (60,243)  
Payments on note payable – related party (25,114)  
Proceeds from issuance of redeemable preferred stock 1,355,000 1,335,000
Repayment of convertible debentures (1,606,023)  
Net Cash Provided By Financing Activities 363,620 948,000
Net increase (decrease) in cash and cash equivalents 1,035,980 (214,885)
Cash and cash equivalents at the beginning of the period 136,030 503,870
Cash and cash equivalents at the end of the period 1,172,010 288,985
Cash paid during the period for interest expense 180,162 257,176
Issuance of common stock as consideration for accounts payable   77,695
Issuance of note payable in conjunction with warrant cancellation 50,000  
Beneficial conversion feature of redeemable convertible preferred stock 427,895 394,350
Value of warrants issued with redeemable convertible preferred stock 427,895 394,350
Accretion of discount on redeemable preferred stock 316,908 78,299
Accretion of dividends on redeemable preferred stock 191,283 80,446
Retirement of derivative liability related to warrant obligation 1,729,299  
Conversion of preferred stock to common stock $ 375,000