v2.3.0.15
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended12 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Dec. 31, 2010
Dec. 31, 2009
Cash flow from operating activities:    
Net loss$ (6,142,744)$ (2,293,774)$ (7,040,767)$ (2,439,851)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of contingent note payable and note discounts290,910145,428468,15744,064
Depreciation and patent amortization30,748106,453214,05152,694
Patent impairment charge  1,749,664 
Allowance for doubtful accounts3,724(26,724)(26,724) 
Reserve for inventory 63,194185,93858,773
(Gain) loss on settlement of debt 478,262478,262(105,684)
Loss on settlements from litigation   82,000
Adjustment to conversion price to induce conversion to equity258,328   
Beneficial conversion features granted  606,400 
Change in fair value of derivative instruments818,545(862,958)(1,709,029)23,575
Derivative liabilities resulting from issuance of convertible notes 1,079,584  
Incremental derivative liabilities855,644 1,796,622 
Common stock and warrants issued for interest   286,444
Common stock issued for debt payment extensions357,320 45,000 
Stock based compensation2,334,320512,3031,287,618542,600
Contingent compensation payable10,59016,66733,33310,186
Changes in operating assets and liabilities:    
Accounts receivable26,05178,2457,187135,507
Inventory and inventory deposit(233,363)29,895100,491151,366
Deferred compensation   329,974
Prepaid expenses and other assets25,957(73,254)(5,868)10,525
Accounts payable and accrued expenses91,946156,069545,625(215,895)
Accrued interest payable275,975180,819367,69485,334
Deferred revenue70,65749,266  
Net cash used in operating activities(925,392)(360,525)(896,346)(948,388)
Cash flow used in investing activities:    
Purchase of fixed assets(16,040)(7,035)(16,414)(4,517)
Net cash used in investing activities(16,040)(7,035)(16,414)(4,517)
Cash flow from financing activities:    
Proceeds from promissory notes payable785,000 152,000 
Payments on promissory notes payable (97,837)(142,873)(83,871)
Proceeds from related party advances and notes payable  6,0005,000
Payment on related party notes payable (5,000)(11,000)(36,000)
Proceeds from convertible promissory notes85,000390,000790,000 
Obligation to issue common stock22(5,000)(5,000)5,000
Proceeds from issuance of common stock  128,2001,066,000
Proceeds from issuance of common stock and warrants110,00078,200  
Net cash provided by financing activities980,022360,363917,327956,129
Net increase (decrease) in cash38,590(7,197)4,5673,224
Cash and cash equivalents at beginning of period15,92411,35711,3578,133
Cash and cash equivalents at end of period54,5144,16015,92411,357
Supplemental disclosures:    
Cash paid for interest49,7404489,7716,566
Cash paid for income taxes    
Non-cash financing activities:    
Preferred and common stock issued in settlement of debt   432,750
Conversion of convertible debentures to common stock244,00025,000 350,000
Conversion of convertible debentures to common stock  225,000 
Common stock and warrants issued as debt discount150,327   
Deemed dividend from Series B Preferred Stock   985,000
Cancellation of shares upon issuance of convertible notes (200,000)(200,000) 
Cancellation of warrants
    
Non-cash financing activities:    
Common stock issued 68,00068,000 
Accrued interest
    
Non-cash financing activities:    
Common stock issued153,7158,5508,550 
Deferred financing fees
    
Non-cash financing activities:    
Common stock issued117,589   
Trade payables
    
Non-cash financing activities:    
Common stock issued244,800   
Patent
    
Non-cash financing activities:    
Common stock issued   18,750,000
Contingent note assumed for patent purchased, net of discount   $ 777,272